Hyundai has been on a spending spree lately. Recently, the South Korean automaker invested about $250 million in a ride-hailing company, and now, according to a report from Reuters, it is investing $880 million in a plant in Indonesia where it plans to start building electric vehicles.
Why is Hyundai Expanding into Indonesia?
Even though Hyundai is doing well all across the globe, it has not been able to crack into Southeast Asia. This will be the automaker’s first factory there, and setting up a plant in Indonesia is a wise move as this helps Hyundai cut its reliance on China, where sales have taken a major hit due to the diplomatic tensions between the two countries.
Statistically Speaking
According to Airlangga Hartarto, Indonesia’s Deputy Minister for Industry, the Hyundai plant will have an annual production capacity of about 250,000 vehicles, including electric vehicles.
Our Take
Hyundai, as an automaker, produces one of the most refined and clean combustion engines available today and will certainly be one of the last survivors. We don’t get to hear much about the South Korean and its diversifications. Other than EVs, Hyundai is also diversifying into ride-hailing services like many other automakers, and it looks like the company is finally getting aggressive with its future plans before it gets too late. However, Hyundai is still nowhere to be seen in the autonomous scene. Do you think Hyundai does not believe that autonomous technology is the future, or is it being too complacent about it? Let us know your thoughts in the comments section below.
Further reading
Read our full review on the 2019 Hyundai Kona Electric.