Hyundai Motor, Grab partner on EV-based car hailing service in Indonesia

Hyundai Motor Manufacturing Indonesia Director Choi Yoon-seok, left, with Grab Indonesia Managing Director Ridzki Kramadibrata, second from left, and Indonesian government officials in front of Ioniq Electric in Jakarta, Friday. / Courtesy of Hyundai Motor

By Kwak Yeon-soo

Hyundai Motor is looking to raise its share of Southeast Asian markets by launching a car-hailing service in Indonesia in partnership with Grab, the company said Friday.

The two firms will launch the pilot electric vehicle (EV) project in Jakarta early next year with 20 Ioniq EVs leased to Grab drivers. The automaker plans to increase the number by the end of 2020.

The Ioniq EV can travel up to 271 kilometers per charge and can be charged to about 80 percent capacity in an hour, the company said.

The move comes after Hyundai and its affiliate Kia Motors jointly invested $275 million in Singapore-based Grab in January for a partnership in the already crowded car-hailing service market.

The company has been increasing its presence in growing Southeast Asian markets following sluggish sales in China and the U.S. It is also looking to shift to become a “mobility solution” provider to shore up growth.

“We have decided to join hands with Grab to launch an EV-based car-hailing service due to an increasing public awareness of the environment in Indonesia and the government's eco-friendly policies,” said Choi Yoon-seok, Hyundai Motor Manufacturing Indonesia director.

He said Hyundai Motor will facilitate its transition into a “smart mobility solution provider” and strengthen leadership in Indonesia's EV market.

“We are pleased to announce the strategic partnership with Hyundai, and we look forward to collaborating closely to continue innovating new mobility solutions for Southeast Asia,” said Ridzki Kramadibrata, managing director of Grab Indonesia.

Indonesia is the largest automotive market in Southeast Asia, with 1.15 million vehicles sold last year. Its average 5 percent economic growth and 270 million population are also attractive factors for carmakers.

In November, Hyundai Motor invested $1.55 billion to set up a plant in Indonesia and utilize it as a regional manufacturing base.

The plant, which is expected to break ground in December, will begin operation at the end of 2021 with a capacity of 150,000 vehicles a year. It will later increase output to 250,000.

The group said it plans to produce a new small SUV, a small multi-purpose vehicle and an electric vehicle for Southeast Asian markets.

Hyundai Motor recently announced its “Strategy 2025” roadmap to accelerate its transition into a smart mobility provider.

In the U.S., the company will capitalize on car sharing and “robotaxi” services ahead of the anticipated commercialization of autonomous vehicles.

In Korea, Asia and Australia, Hyundai plans to enter the mobility service market by partnering with leading local players.

In Europe and Russia, the company will focus on businesses that combine products and services.