Hyundai has officially stated that Indonesia was chosen as the location for the production of electric cars. Meanwhile, Hyundai’s subsidiary, KIA, prefers to build cars in neighboring countries, namely Malaysia.
Reporting from Paultan, Kia Malaysia, a joint venture between KIA Motor and Bermaz Auto, has officially announced that it will produce 100,000 vehicles for Malaysia and the export market until 2026. Later, four models will be assembled Completely Knock Down (CKD), namely Carnival, Sorento, Sportage, and Niro.
Through a press conference some time ago, KIA revealed that the implementation of CKD in Malaysia is one of the keys to KIA’s success in supporting sales in the Southeast Asian region. KIA chose Malaysia because there are CKD policies, logistics, and suppliers from the government.
This is also predicted to benefit Hyundai, the parent company that houses KIA. The choice of different factory locations is believed to be beneficial for the two companies’ businesses in the ASEAN region.
Kia targets that 60 percent of the total 100 thousand car production units will be sent to several countries in Southeast Asia, including Indonesia, Thailand, Singapore, Myanmar, Cambodia, Laos, the Philippines, Vietnam, and Brunei Darussalam.
Meanwhile, Hyundai, which has a factory in Indonesia, plans to send a number of ‘made in Indonesia’ vehicles to several other countries. The factory, which reportedly carries this advanced technology, is projected to produce around 150 thousand units of cars per year. In fact, the capacity can be optimized up to 250 thousand units.
One of the cars that will be exported is the Hyundai Creta, the car assembled in Cikarang is planned to be sent abroad. But for any destination country, Hyundai is still keeping the information tightly closed.
Kia will assemble the vehicle at the Inokom factory in Kulim, Kedah, Malaysia. Meanwhile, Hyundai will build its electric car at a factory located in Cikarang, Bekasi Regency, West Java.
Besides producing electric cars, Hyundai has also invested heavily with LG to build an electric car battery cell factory in Indonesia, even the first in Southeast Asia.
The production of this battery cell is targeted to start in 2024 and is only projected for electric cars designed using a special Electric-Global Modular Platform (E-GMP). For information, E-GMP is not only used to design electric cars for Hyundai but also for Kia.