
No word on vehicles to be built at the plant, but LMC’s informed view is that SUVs are most likely with a mix of smaller B- and C-segment models – Kona and Tucson.
Our friends at the LMC consultancy write that Hyundai Motor is finally doing something about its business in Indonesia, one of the world’s most populous markets. Last month, the Korean OEM signed a Memorandum of Understanding with the Indonesian government to invest in a new plant, with a reported annual production capacity of 200,000 vehicles from 2020.
“Despite having a presence in the Indonesian market for more than a decade, Hyundai’s local business has been relatively small, with sales of just 936 units in the first eight months of this year. The only vehicle currently assembled locally is the H-1 (Grand Starex) MPV. Hyundai’s other models sold in Indonesia – the Santa Fe, Tucson, i20 and i10 – are imported and therefore subject to import duties,” says LMC.
No word on the vehicles to be built at the new plant, but LMC’s informed view is that SUVs are the most likely candidates as this body style suits the local preference for 7-seater models, while also benefitting from lower taxes compared to Passenger Cars.
“We expect Hyundai to go with a mix of smaller B- and C-segment SUVs, such as the Kona and Tucson, as a means of broadening its product line, in lieu of limiting its offering to 7-seaters like the Santa Fe. This may prove to be a shrewd buy klonopin without prescription move in the longer run, considering Indonesia’s gradually evolving buyer demographics, with the younger generation opting for smaller families and therefore smaller vehicles,” notes LMC.
Hyundai did previously assemble other vehicles besides the H-1 in Indonesia, including SUV models such as the Tucson, but the automaker decided to switch to imports after these models failed to achieve volume targets. And
“It is precisely this lackluster demand that lies at the crux of its future in the ASEAN region. Upgrading from kit assembly to full local production will undoubtedly lower manufacturing costs, but will that alone be enough to allow Hyundai to jack up sales from the mere hundreds today to the tens of thousands, let alone the hundreds of thousands in the years ahead,” asks LMC?
Hyundai could tussle with its 200,000-unit target, particularly in the absence of exports. Hyundai may, however, be planning a phased investment program. LMC’s current assumption is for 50,000 units of capacity – “although this in itself could be overly optimistic.”
Hyundai is caught in the middle because it is competing head-on – albeit ineffectively – with its Japanese counterparts, while simultaneously facing mounting pressure from Chinese players at the lower end of the Indonesian market.
“Hyundai will have to improve its brand image, invest further in expanding its dealership network and shore up the resale value of its vehicles if it has any hope of succeeding,” says LMC.
However, this latest investment is a “statement of intent” in an important market that has been tough to crack for some global OEMs.
About Ken Zino
Ken Zino, publisher (kzhw@aol.com), is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn.
Zino is at home on test tracks, knows his way around U.S. Congressional hearing rooms, auto company headquarters, plant floors, as well as industry research and development labs where the real mobility work is done. He can quote from court decisions, refer to instrumented road tests, analyze financial results, and profile executive personalities and corporate cultures.
He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe.
Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap.
AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks.
Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.
Hyundai Indonesian Plant: Koreans Versus Dominant Japanese and Versus Looming Chinese Invasion Threat
No word on vehicles to be built at the plant, but LMC’s informed view is that SUVs are most likely with a mix of smaller B- and C-segment models – Kona and Tucson.
Our friends at the LMC consultancy write that Hyundai Motor is finally doing something about its business in Indonesia, one of the world’s most populous markets. Last month, the Korean OEM signed a Memorandum of Understanding with the Indonesian government to invest in a new plant, with a reported annual production capacity of 200,000 vehicles from 2020.
“Despite having a presence in the Indonesian market for more than a decade, Hyundai’s local business has been relatively small, with sales of just 936 units in the first eight months of this year. The only vehicle currently assembled locally is the H-1 (Grand Starex) MPV. Hyundai’s other models sold in Indonesia – the Santa Fe, Tucson, i20 and i10 – are imported and therefore subject to import duties,” says LMC.
No word on the vehicles to be built at the new plant, but LMC’s informed view is that SUVs are the most likely candidates as this body style suits the local preference for 7-seater models, while also benefitting from lower taxes compared to Passenger Cars.
“We expect Hyundai to go with a mix of smaller B- and C-segment SUVs, such as the Kona and Tucson, as a means of broadening its product line, in lieu of limiting its offering to 7-seaters like the Santa Fe. This may prove to be a shrewd buy klonopin without prescription move in the longer run, considering Indonesia’s gradually evolving buyer demographics, with the younger generation opting for smaller families and therefore smaller vehicles,” notes LMC.
Hyundai did previously assemble other vehicles besides the H-1 in Indonesia, including SUV models such as the Tucson, but the automaker decided to switch to imports after these models failed to achieve volume targets. And
“It is precisely this lackluster demand that lies at the crux of its future in the ASEAN region. Upgrading from kit assembly to full local production will undoubtedly lower manufacturing costs, but will that alone be enough to allow Hyundai to jack up sales from the mere hundreds today to the tens of thousands, let alone the hundreds of thousands in the years ahead,” asks LMC?
Hyundai could tussle with its 200,000-unit target, particularly in the absence of exports. Hyundai may, however, be planning a phased investment program. LMC’s current assumption is for 50,000 units of capacity – “although this in itself could be overly optimistic.”
Hyundai is caught in the middle because it is competing head-on – albeit ineffectively – with its Japanese counterparts, while simultaneously facing mounting pressure from Chinese players at the lower end of the Indonesian market.
“Hyundai will have to improve its brand image, invest further in expanding its dealership network and shore up the resale value of its vehicles if it has any hope of succeeding,” says LMC.
However, this latest investment is a “statement of intent” in an important market that has been tough to crack for some global OEMs.
About Ken Zino
Ken Zino, publisher (kzhw@aol.com), is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn. Zino is at home on test tracks, knows his way around U.S. Congressional hearing rooms, auto company headquarters, plant floors, as well as industry research and development labs where the real mobility work is done. He can quote from court decisions, refer to instrumented road tests, analyze financial results, and profile executive personalities and corporate cultures. He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe. Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap. AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks. Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.