The National Car Project Attracts Hyundai's Interest, A Strong Signal From Global Investors

Hyundai Motor Group provides logistical support in the form of 393 vehicles from various models for the G20 meeting in Bali in 2022. (Photo: Hyundai Global)

Hyundai Motor Company expressed interest in participating in the national car project initiated by the Indonesian government. This was conveyed by the Coordinating Minister for Economic Affairs, Airlangga Hartarto, after meeting with the Hyundai delegation in Gyeongju, South Korea.

Airlangga explained that the meeting marked a positive signal from Hyundai against the Indonesian government's plan to develop a national car. President Prabowo Subianto previously targeted that Indonesia could produce cars fully in the next three years, with factory land and budgets that had been prepared.

"We welcome Hyundai's interest in being part of a national car project. This shows the confidence of global investors in the potential of the Indonesian automotive industry," Airlangga said as quoted by Reuters, quoted Monday, November 3.

"We see great opportunities for collaboration in the development of hydrogen-based vehicles and other clean energy, which is an important part of Indonesia's green economy transition strategy," he continued.

However, Airlangga has not explained in detail the form of Hyundai's contribution to the project, including the amount of investment or its production scheme. Meanwhile, Hyundai has not provided an official statement regarding their engagement plan.

Currently, Hyundai already has vehicle production facilities in West Java, as well as electric vehicle battery factories in collaboration with LG Energy Solution. This facility has a large production capacity and is an important part of strengthening the supply chain of electric vehicles in Indonesia.

Hyundai's participation in this national car project is considered a strategic step, considering that the South Korean company has a long experience in developing automotive technology. However, further discussions are still needed between the government and Hyundai to formulate technical aspects, regulations, and investment commitments.

Meanwhile, Hyundai President Amb Sung Kim only expressed his appreciation for the Indonesian Government's vision. Where, currently, it is aggressively accelerating the development of low-emission vehicles.

"Hyundai is committed to presenting a sustainable and competitive future mobility solution. Collaboration in the fields of AI, robotics, and hydrogen technology is an important part of our long-term strategy to support clean and efficient mobility," he said.