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Hyundai to double EV production in Indonesia amid soaring demand

Jakarta Globe - April 15, 2023

Herman, Jakarta – South Korean automaker Hyundai plans to boost production of electric vehicle model Ioniq 5 which now enjoys huge demand in Indonesia to 1,000 units per month, more than double the current output from its assembly plant in West Java, an executive said on Friday.

The production boost is riding momentum on the government's generous incentive awarded for the purchase of EVs which has 40 percent or more locally made components.

Under the incentive program, the government shoulders 10 percent VAT in every purchase, meaning that a buyer can save at least Rp 60 million for a brand new Ioniq 5.

The incentive drives up the demand for Ioniq even more, with around 4,000 orders on the waiting list in the meantime.

"Ioniq 5 is recently becoming the Hyundai model that attracts high demand from consumers. Hyundai will increase the supply of Ioniq 5, currently one of the most popular EV brands in Indonesia," Woojune Cha, the CEO of the local unit Hyundai Motors Indonesia, said in a statement.

"The decision is to make sure that consumers can fully enjoy the benefit of the tax incentive," he added.

The price of Ioniq 5 starts from Rp 673 million including VAT in the Indonesian market. Ioniq goes down in history as the first EV model to be assembled in the country after Hyundai completed a major assembly plant in Cikarang.

It was introduced during the Indonesia International Motor Show last March. Without the expanded capacity, a consumer will have to wait until six months to get Ioniq delivered.

Source: https://jakartaglobe.id/business/hyundai-to-double-ev-production-in-indonesia-amid-soaring-deman