Hyundai has announced its intention to commence electric vehicle (EV) manufacturing in Indonesia, beginning with the Kona Electric SUV, as part of its strategy to strengthen its foothold in the ASEAN region. This initiative makes Hyundai the first automaker to localize EV production down to the battery cell level in Indonesia.
The production will be facilitated by HLI Green Power, a joint venture between Hyundai Motor Group and LG Energy Solution, specializing in lithium-ion NCMA battery cells. Located in Karawang near Jakarta, the facility boasts an annual production capacity of 10 GWh, sufficient to power over 150,000 EVs based on Hyundai’s Electronic Global Modular Platform (E-GMP).
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Hyundai Mobis will handle the integration of battery cells into modules with controllers and heat management systems. These modules will then be shipped to Hyundai’s assembly plant in Cikarang, approximately 60 km southeast of Jakarta, where final assembly of the Kona Electric will take place.
Currently, Hyundai offers the Ioniq 5 and Ioniq 6 EVs in Indonesia, with the former assembled from CKD kits and the latter imported as completely built units (CBUs). The locally manufactured Kona Electric is expected to be competitively priced, starting at around IDR 500 million (EUR 28,452) for the base model, significantly lower than imported EV variants.
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The Kona Electric will be available in Indonesia in Standard Range and Long Range versions, boasting travel distances exceeding 400 km and 600 km respectively, as per internal testing.
Indonesia’s strategic importance lies in its vast nickel reserves, with the government’s recent policy restricting nickel ore exports since 2020, thereby boosting local demand for EV components. By targeting 25% of new vehicle sales as EVs by 2030, Indonesia aims to accelerate its transition towards sustainable mobility solutions.
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Hyundai sees Indonesia as a crucial hub in its broader ASEAN market strategy, leveraging local resources and supportive regulations to enhance its EV manufacturing capabilities and market presence in the region.
