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Hyundai’s electric car market share in Indonesia exceeds 90%, but sales have much room for improvement

According to foreign media reports, Hyundai Motor, which has announced that it will produce the IONIQ 5 electric car at its Indonesia plant and invest $1.55 billion to increase the plant’s annual production capacity to 250,000 units, has a much higher share of the Indonesian electric car market than other manufacturers, too.

From foreign media reports, data released by the Indonesian Automobile Industry Association shows that Hyundai accounted for 98% of the electric cars sold in May this year, and 92% in the first five months, also exceeding 90%.

However, although Hyundai has a large share of the EV market in Indonesia, EV sales in the Indonesian market are still low, with only 200 units sold in May and only 363 units sold in the first 5 months of the year. Compared with other important markets for electric vehicles, there is still a big gap.

In addition, according to the data released by the Indonesian Automobile Industry Association, the proportion of electric vehicles in the Indonesian market is still very low. In the first five months of this year, 396,153 new cars were sold in Indonesia, and the proportion of electric cars is less than one thousandth, so there is still a lot of room for improvement.

The fact that Hyundai has a large share of the Indonesian electric car market is probably related to the fact that other manufacturers have not yet entered the market in a big way. As other manufacturers have entered, Hyundai’s share, then, is expected to decrease.

Indonesia, with its rich nickel resources, has been a key location for many electric car makers and battery manufacturers to consider building factories. Late last month, a senior Indonesian official revealed that Tesla has agreed to invest in Indonesia to build electric car and battery factories, and said that Tesla will enter Indonesia this year.

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