Hyundai to miss the Indonesian market in the hands of Toyota

 

If Indonesia - the world's fourth most populous country is a door into the house 650 million people of Southeast Asia, Hyundai soon gave way before the key to opening the door for Toyota.According to LMC Automotive, sales of Hyundai and Kia Motor vehicles account for only 2% of the car market in Indonesia - much lower than the 95% market share that other Japanese automakers dominate.
Indonesia with a population of 250 million people - more than double Japan - accounted for nearly 40% of the population in Southeast Asia with an annual economic growth rate of not less than 4% in a decade is his lucrative bargain that any large Everyone wanted the factory. Especially in the context of the demand in the U.S. market fell sharply, while the Chinese market competition too fierce. Recognizing this opportunity, Toyota is investing $ 1.3 billion to double the output in this potential market. However, Hyundai is still hesitant foot in the "door" named Indonesia.
Kim Pil-soo, a professor of automotive research at the University of Daelim Korean government advisor said: "If Hyundai stalled, it will miss not only Indonesia but also market other Southeast Asian markets. One of the biggest problems of Hyundai in Indonesia is the lack of attractive models ".

In response to this problem, Hyundai said it is to allocate resources to other markets - the market less severe due to the lack of the shadow of Toyota, GM, Tata ... to expand the scope of art. Hyundai and Kia Motors Corp. (Group 34% stake owned by Hyundai) has no plans to build factories in Indonesia and Southeast Asia. However, Vice Chairman of Kia Motors Corp. Lee Soon Nam said it will definitely build more factories in Southeast Asia to tap into this area when the time is ripe. Kia is planning to introduce new Carens in Indonesia, Philippines and Malaysia next month.
On whether to build factory in Indonesia or not, expert analysis of the LMC - Ammar Master said that this is like asking "chicken or egg". Hyundai can not build factories when sales of the company last year and Kia vehicles reached 19,748 units - much lower than the capacity of 10,000 pcs / year of the smallest Hyundai plant in Turkey. However, Hyundai sales in the Indonesian market in particular and Southeast Asia in general will not be moved up to cover if it does not build an assembly plant in the region.
GM and Toyota as the previous example. Thanks to cheap labor, transportation costs and low taxes, the company has launched many popular cars and pocket huge profits. In addition, the car market in Indonesia is expected continuation of last year's growth rate of 25%, much higher than the 4.2 percent of China. Therefore, in-depth investment in Indonesia is still a question of worth Hyundai mind.