Hyundai and Artha Graha formed joint venture for SEA

Hyundai Motor Company and Artha Graha Group collaborate to establish a commercial vehicle joint venture in Indonesia. The auto maker giant headquartered in Seoul and the Indonesian conglomerate signed a joint venture agreement on Tuesday to tackle the Southeast Asian market.

Hyundai Motor and AG Group formed a joint venture in Indonesia and will expand to Southeast Asian countries. The collaboration will bring Hyundai and AG Group to establish a business entity in Jakarta in May 2018 to manage production, sales, after-sales service and so on.

Tinuku Hyundai and Artha Graha formed joint venture for SEA market

"Hyundai will fully support the joint venture to bridge both partnerships. Starting in the Indonesian market, we will accelerate expansion into nearby countries," said Lee In-cheol, senior vice president of Hyundai's commercial vehicle export division.

Hyundai mentions a factory equipped with knock-down equipment and facilities designed for Hyundai commercial vehicles to minimize costs and risks. AG Group was established in 1973 and is currently the 10th largest conglomerate in Indonesia that mainly manages the property, finance, agro-industry and hospitality sectors.

Hyundai vows to expand its presence in the Indonesian automotive market where Japanese carmakers currently control more than 90 percent. About 2,000 commercial vehicles each year will be produced in a new factory in Indonesia.

The company has high expectations for the Southeast Asian market that currently charges taxes of up to 80 percent for South Korean vehicles. But production in Indonesia allows customs-free due to the ASEAN Free Trade Zone.