Hyundai Sime Darby Motors (HSDM) launched new generations of the Elantra and Sonata models late last year and switched to sourcing that is not locally assembled.

For many years, these two models were staple to the brand and distributors, and priced strategically thanks to local assembly (CKD) at the Inokom plant in Kulim, Kedah.

The new generation Elantra and Sonata models are now fully imported (CBU) from South Korea and thus the higher price levels. However, a recent news report from The Edge Malaysia informed that HSDM is set to increase in output of locally assembled models.

Currently, only the Santa Fe model is locally assembled and SD Motors, the parent company of HSDM, confirms that more CKD Hyundai projects are being proposed as the product line-up expands in the future.

This development can be attributed to a new mega-production facility currently in its final phase of construction in Kota Deltamas, east of Jakarta, Indonesia. Hyundai Motor Company has invested a total of US$ 1.55 billion and part of it is the development of its first Asean manufacturing hub with an initial capacity of 150,000 vehicles.

Finished vehicles are set to roll out by the end of 2021. In the future, the manufacturing hub is capable of an output of 250,000 vehicles a year.

A spokesperson from SD Motors said, ”In fact, with Hyundai’s new plant in Indonesia expected to produce right-hand drive assembly kits, which brings added value through tax savings for sales of vehicles, we look forward to increasing our assembly volume for Hyundai vehicles at Inokom [sic].”

The new CKD Hyundai model planned for Malaysia is scheduled for production in 2022, and according to the spokesperson, is an SUV model. We highly suspect the said SUV model is the fourth-generation Tucson model, as it was only unveiled last quarter.

Hyundai is also set to globally unveil its new electric vehicle (EV) called the Ioniq 5 next week (2nd February). The automaker also said it’s exploring the possibility of manufacturing Asean-specific EVs at the new Indonesian production facility.  

Source: The Edge