The shift is in favour of investment incentives offered for EVs development in the republic
by RAHIMI YUNUS / pic by BLOOMBERG
HYUNDAI Motor Co is planning to move its regional headquarters (HQ) to Indonesia, according to a report.
A report by wapcar.my recently stated that the company is closing its Asia Pacific regional HQ in Mutiara Damansara in Petaling Jaya, Selangor, to Indonesia in favour of investment incentives offered for electric vehicles (EVs) development in the republic.
The report said the move will be done in stages until year-end. The regional HQ was opened in 2015, housing Hyundai Training Academy that provides enhanced training for all Asia Pacific Hyundai distributors trainers in 33 countries in the region.
It was Hyundai’s second training academy that is fully equipped with the carmaker’s newest dealership space identity standards, following the first establishment in Dubai.
Last November, Hyundai signed a preliminary deal to build a new factory in Indonesia with an investment of US$1.55 billion (RM6.26 billion) until 2030.
Besides Hyundai, Toyota Motor Corp has planned to invest US$2 billion to develop EVs in Indonesia from 2019 until 2023 starting with hybrid vehicles.
“Because the Indonesian government already has an EV development map, Toyota considers Indonesia as a prime EV investment destination,” Toyota president Akio Toyoda said in the statement previously.
Malaysia has plans and initiatives to spur the development of EVs and become a regional hub as provided in the National Automotive Policy 2020 (NAP 2020).
With various industry developments indicating automotive companies shifting to Singapore, Indonesia and Vietnam, for instance, critics now raised questions on the NAP 2020’s traction.
Malaysia Automotive Robotics and Internet of Things Institute CEO Datuk Madani Sahari declined to comment when requested.
The NAP 2020 incorporates three new advanced technological elements — next-generation vehicle, mobility-as-a-service and the IR4.0.
The automotive framework will become the guiding principle of the industry between 2020 and 2030.
It wants to grow the total industry volume to 1.22 million units by 2030, total production volume to 1.47 million units, motor vehicle export value to RM12.3 billion, parts and components exports to RM28.3 billion and remanufactured parts and components exports to RM10 billion.
Tesla Inc is also looking at Indonesia to invest in its EVs supply chain as President Joko Widodo stepped up efforts to woo investments.
Additionally, China’s lithium battery producer Contemporary Amperex Technology also plans to invest US$5 billion in a manufacturing plant in Indonesia, and the list goes on for many other multinational companies.