Hyundai Motor Co.’s pivot to Southeast Asia is starting to pay off with sales of vehicles manufactured at its plant in Indonesia sharply rising.

South Korea’s largest automaker sold 27,875 vehicles in the first 10 months of this year in Indonesia, according to data compiled by the Southeast Asian country’s automotive industry association Gaikindo. It expects to sell more than 30,000 by the end of this year. This compares with about 3,000 units sold in 2021. Its ranking also rose to eighth place this year, from 13th in 2021.

The Indonesian plant produced 64,795 vehicles in the first 10 months of this year, with half of the output exported to other countries in Southeast Asia. Among models, it produced 47,280 units of Creta sport-utility vehicle, 15,264 units of Stargazer SUV, 1,508 units of Ioniq 5 electric vehicles and 743 units of Santa Fe SUVs.

Ioniq 5 is the first EV to be produced at the Indonesian plant, which was completed in March, and plans to target major markets in Southeast Asia that long has been dominated by Japanese brands.

Hyundai Motor and LG Energy Solution are currently building a battery cell manufacturing plant in Indonesia’s Karawang region. The facility is expected to start operation in the first half of 2024 and provide batteries for Ioniq 5 cars at in Hyundai Motor’s Southeast Asian factory.

Hyundai Motor’s factory is located in Deltamas Industrial complex near Cikarang, Indonesia, 40 kilometers east of Jakarta. It currently has an annual production capacity of 150,000 units and is expected to be expanded to 250,000.

The Korean automaker is also keen on pioneering Indonesia’s air space. Hyundai Motor Group signed a memorandum of understanding with the Indonesia’s Nusantara Capital City Authority last week to work together to establish advanced air mobility ecosystem in the Southeast Asian country.

The MOU aims to introduce AAM as part of a smart mobility ecosystem in the new capacity city that Indonesia is working to set up. Hyundai Motor Group plans to develop a roadmap and review the concept of consolidated mobility for ground and air, while carrying out an AAM demonstration project and test flights.

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