Hyundai decided to seriously engage in the production of electric cars

Hyundai decided to seriously engage in the production of electric cars

December 24, 2018 0 By autotimesnews

It is reported that the leadership of the South Korean brand plans to invest about 880 million dollars in the construction of its new plant in Indonesia, which will produce only electric vehicles. From the conveyors of this company will go 250,000 cars annually.

According to the foreign publication Reuters, the company Hyundai will begin production of electric vehicles in Indonesia and for this will invest in the country 880 million dollars. According to the Deputy Minister of Industry of Indonesia, the annual production of Hyundai at the new plant will be about 250,000 electric vehicles.

The minister also said that the current plans envisage that 47% of the vehicles produced will be sold on the local market, and the rest will be exported, mainly to Southeast Asia and Australia.

The new plant will be Hyundai’s first auto plant in Southeast Asia and will help the South Korean automaker reduce its current dependence on China, where sales have suffered from diplomatic tensions between the two countries.

One of the factors influencing the fact that the leadership of Hyundai chose Indonesia, is that the country has large reserves of essential minerals. We are talking about nickel lateritic ore, which is a key element necessary for the production of lithium-ion batteries.

Despite Hyundai’s strong presence in dozens of markets around the world, Hyundai struggled to penetrate Southeast Asia. For example, in Indonesia from January to October of this year only 1372 cars were sold. For comparison, Toyota sold 4,63565 vehicles over the same period of time.