Hyundai Motors Indonesia considers that the electric vehicle incentive, namely zero percent transfer fee, is on the right track.
Head of Public Relations Hyundai Motors Indonesia Uria Simanjuntak said that adopting electrification does not only require the role of vehicle manufacturers, but collaboration with various parties ranging from providers of Public Electric Vehicle Charging Stations (SPKLU) to the government in terms of policy.
“I think everything is on the right track for us from the manufacturer and maybe other manufacturers also feel very helpful. The policy is of course in accordance with the results of in-depth research, we will support the ecosystem as a whole starting from our products, services, infrastructure and also production ready to help,” said Uria at the GIIAS 2023 exhibition in Bandung, Friday (24/11/2023).
With this policy, Uria said that one of his products, namely Ioniq 5, which was included in the government incentive scheme, experienced positive growth.
“Before the incentives took place in April 2023, the response to electric vehicles was actually very positive, and when the policy took place there was an increase of at least two-fold since the beginning of the year and continues to grow positively for the Ioniq 5,” he said.
In line with that, Head of Marketing Department Hyundai Motors Indonesia Astrid Ariani Wijana said that with the incentive facilities that have so far only been provided to two manufacturers provided the product is produced in Indonesia and has sufficient Domestic Component Level (TKDN), there has been an increase in demand for electric vehicles.
“There is definitely an increase. Usually in the past we could only deliver 200-300 units, but now we can deliver more or less on average every month at more than 700 units throughout Indonesia,” he said.
This increase, said Astrid, is indeed good news, but on the other hand it is a challenge. Therefore, when the regulations were rolled out, Hyundai’s first commitment was to increase production capacity to accommodate the increasing demand that had to be met.
“It’s useless to have regulations, the demand is there but the capacity isn’t there. Increasing sales is only in the air when the cars don’t exist, so Hyundai’s first task is to ensure the production capacity is there to support this regulation,” he said.
Because of this, Astrid said that Hyundai Motor Manufacturing Indonesia (HMMI) is committed to increasing the production capacity of subsidized electric vehicles by up to 1,000 units per month in order to fulfill distribution throughout Indonesia.
“This is not only to ensure that availability will remain stable, and automatically the government program will be successful,” he said.
Meanwhile, overall, to encourage the formation of an electric vehicle ecosystem while making Indonesia become the leader of electrification in Southeast Asia again, Hyundai said it would increase electric car production capacity by 250 percent by 2024.
Currently the capacity or production capability of electric cars in HMMI Cikarang, West Java, reaches 20,000 per year and will be increased to 70,000 electric car units in 2024.
For sales of various Hyundai products, Astrid explained that currently West Java is the second province with the highest sales nationally, namely 19.6 percent.
“Of this 19.6 percent, the city of Bandung gets 37 percent, the second city of Bogor is around 29.8 percent, followed by Depok with almost 20 percent,” he said.
The backbone of sales in West Java, added Astrid, are the Stargazer, Creta and Ioniq, which are electric cars.
“Throughout 2023 from January to October, 689 units of the Stargazer were sold, then 328 units of the Creta, and 214 units of the Ioniq. With this regulation, we will also ensure as much as possible that electric car production is stable and hopefully Bandung can soar past Jakarta,” he said .
