Hyundai’s Indonesian unit hopes that the automaker will focus on the ASEAN market and consider expanding here.
The unit tries to convince Hyundai that building a plant in Indonesia will boost sales in both domestic and ASEAN markets. Hyundai is expected to reach sales of 6, 500 units in Indonesia this year, and the ASEAN market could offer a range of 60,000-70,000 units per year.
“Currently, the company is focusing on Europe and America. But I’ve said many times that it should focus on ASEAN as a potential region for the future. In ASEAN, there are three million cars sold every year. Hyundai sells 60 to 70 thousand units per year in the region, while it should really be selling at least 10%, or around 300 thousand units,” said Jongkie D Sugiarto, president director of PT Hyundai Indonesia Motor.
Recently Hyundai announced it plans to build a plant in Brazil, part of its plan to expand in South America, which means that ASEAN would be the only region the automaker has not entered yet. Indonesian customers are willing to wait up to 3-4 months to buy a Hyundai vehicle, as the supply from South Korea is still limited. Hyundai Motor’s quota is 200 units per month, which is smaller than the market demand of 300-400 units per month.