Hyundai Motor Company and PT Energi Makmur Buana (INVI), a subsidiary of PT Indika Energy Tbk. INVI, a new brand that distributes KG Mobility electric buses complete with charging stations, have entered into a collaboration to introduce electric buses, in a significant step toward advancing the electric vehicle landscape in Indonesia.
The primary focus will be on Hyundai’s Elec City (large-sized bus) and Hyundai County EV (medium-sized bus), scheduled for launch in the Indonesian market by 2024.
Young Tack Lee, President of Hyundai Motor ASEAN HQ, expressed the company’s commitment to offering their products in Indonesia, a nation known for its significant number of commercial vehicles. The collaboration with INVI marks a substantial progress in the development of commercial electric vehicles in the ASEAN region.
Hyundai also plans to establish an electric vehicle value chain in Indonesia, positioning the country as the hub for electric vehicles in ASEAN. This includes building a battery cell plant to reduce manufacturing costs, enhance market competitiveness, and benefit from local luxury tax exemptions by achieving targeted Domestic Component Levels (TKDN).
Andreas Justiabel, President Director of INVI, expressed their honor in becoming the primary distributor of Hyundai electric buses in Indonesia.
Their commitment is to make a significant impact on the commercial electric vehicle market, accelerating the adoption of electric vehicles, especially in the commercial sector.
On the other hand, Hyundai and INVI are poised to launch additional models of commercial electric vehicles in the near future. INVI, as part of Indika Energy, actively contributes to the development of environmentally friendly public transportation systems in Indonesia’s new capital, Ibu Kota Nusantara (IKN).
Hyundai’s presence in ASEAN
Hyundai aims to expand its footprint across ASEAN markets, with a particular focus on Malaysia and Singapore. These countries, known for their advanced infrastructure and strong government support for zero-emission regulations, are the initial targets. The expansion will later extend to the Philippines, considering its substantial market potential.
With the opening of Hyundai Motor ASEAN HQ in Jakarta in 2019, and the construction of the Hyundai Motor Manufacturing Indonesia (HMMI) facility in Cikarang, West Java, operating from the second half of 2021. The plant has an annual capacity of 150,000 units, serving as a production center for Southeast Asia.
Hyundai has been managing sales, marketing, after-sales services, fleet operations, and dealerships in the ASEAN region, as well as in Makau, Taiwan, Hong Kong, and Mongolia.
Additionally, Hyundai plans to invest US$ 1.55 billion in joint facilities and future product development until 2030.
The investment includes the Hyundai Mobility Innovation Centre, located alongside HMMI, ensuring that innovations meet customer expectations and needs in the ASEAN region.
