Hyundai Launches Commercial Vehicle Venture in Indonesia

Hyundai Motor Co. has agreed to make commercial vehicles in Indonesia with the country’s Artha Graha Group conglomerate.

The partners aim to set up the venture in Jakarta next May and begin assembling vehicles from complete knock-down kits in the second half of 2018. Details about the vehicles were not released. Hyundai says the share ratio of the venture has not yet been decided.

The companies target annual output of about 2,000 vehicles. Initial sales will be in Indonesia but the partners aim to eventually expand into other markets in southeast Asia.

The Korea Herald notes that Korean-made vehicles imported into the region face tariffs as great as 80%. But vehicles assembled in Indonesia can be shipped duty-free to members of the region’s ASEAN Free Trade Area.