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HYUNDAI Motor Philippines (HMPH) is now a little over a year old since taking over the local operations of the brand. Transformative changes have been made to improve the brand's image, model offerings, as well its retail and after-sales experience. With that in mind, HMPH brought a roster of media personalities to a trip to Jakarta to witness the global reveal of the Stargazer X as well and give us a glimpse of the South Korean automaker's sophisticated Indonesian plant. For most of history, Hyundai's offerings in the region were assembled in its home country of South Korea. Today, Hyundai has a manufacturing hub in Indonesia, affirming its commitment to the Southeast Asian market.
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Building people and cars© Provided by The Manila Times
A factory that just doesn't build cars
Situated at Cikarang, 40 kilometers away from Jakarta, Hyundai Motor Manufacturing Indonesia (HMMI) is Hyundai Motor Company's (HMC) wholly-owned subsidiary and its first factory for Southeast Asia. It is not their first production line in the region though, since the company currently has contract assemblers in Vietnam (Thanh Cong Manufacturing) and Malaysia (Inokom), with most of the production destined for sale in their respective markets only.
HMC's Indonesian plant is located in a massive 77.6-hectare area where 18 hectares is the size of the factory itself. It's a $1.55-billion investment that has a production capacity of 150,000 units per year but with room to expand to 250,000 units annually. The Stargazer and the recently-launched Stargazer X are produced here, along with the Creta. Complete knockdown (CKD) assembly, on the other hand, also exists in HMMI in the form of the Santa Fe and Ioniq 5. While it produces cars mainly for Indonesia and the rest of Southeast Asia, the Creta is exported to South America as well.
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A line worker inspects the body panels installed by robots. PHOTOS BY ANJO PEREZ© Provided by The Manila Times
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HMMI is highly automated and robotic, which means that the majority of the stamping to the welding and final assembly has a high degree of automation.© Provided by The Manila Times
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HMMI now produces the Ioniq 5 electric vehicle.© Provided by The Manila Times
But this is where HMMI sets itself apart from other manufacturing facilities in the region. First and foremost, HMMI is one of the few automotive factories in Southeast Asia and the only one in Indonesia to be fully air-conditioned. Along with the highly automated systems in place, the manufacturing plant is designed around the brand's "Progress For Humanity" mantra. So, HMMI is a plant that doesn't just build cars — it also builds employee welfare by putting the workforce's needs at the forefront, thanks to a climate-controlled environment as well as using wearable robotics to support the mobility of factory workers. These wearable robotics don't use batteries, mind you, and these help employees in lifting heavy objects or reduce muscle fatigue in assembly lines that require bending joints for long periods of time.
HMMI's human-centered approach to its employees doesn't just end at the production line. That's because there is a heavy emphasis not just on the usual safety aspect, but also in terms of physical and mental health. There's a clinic and even a psychological center to look after the well-being of employees. The religious and gastronomical needs of the employees are also met with the integrated mosque inside the plant along with a halal-certified canteen. Indonesia, after all, has the world's biggest Muslim population.
Part of its human-centered approach is the use of 100-percent renewable energy achieved through the use of solar panels producing 3.2 megawatts (MW) of energy. The solar panels contribute to 5 percent of HMMI's energy requirement. Does that mean the remaining 95 percent is from fossil fuel sources? Not quite. Just recently, HMMI has been sourcing the rest of its energy needs from the PLN Kamojang Geothermal Power Plant, which is located in Bandung, West Java.
More than just an automaker
But there's another thing I noticed while roaming around Hyundai's Indonesian plant. As mentioned, HMMI is highly automated and robotic, which means that the majority of the stamping to the welding and final assembly has a high degree of automation. What you will notice is that, unlike most automakers who outsource their equipment, Hyundai uses its own robots. Not only that, but a lot of Hyundai's vehicle components aren't sourced from third-party suppliers, either.
To understand, you have to look at Hyundai as a whole. HMC actually has a parent company called Hyundai Motor Group (HMG) and this is where things get interesting. HMG isn't just involved in the manufacturing of the vehicles and its own vehicle components (which is already a rarity in the industry), but the conglomerate also has activities and interests in shipping, logistics, construction, and robotics. HMG, as it stands, is very much a vertically integrated company, which means its production costs are as competitive as it could be. Additionally, by having a supply chain that it could call its own, including the logistics aspect, HMG could maintain a high standard of quality from raw materials to the actual finished product.
Those giant stamping robots you see? That's made by Hyundai Rotem, which also makes trains and defense equipment. Your Hyundai and Kia (because Kia is part of HMG) were shipped to the Philippines by HMG's shipping and logistics division, Hyundai Glovis, using some of the world's biggest ships made by none other than HD Hyundai — a related but different company from HMG involved in heavy-duty industries. HD Hyundai also has a heavy-duty robotics division, and it is also responsible for the automation and the robots used in HMMI's production lines. Even the steel in a Hyundai's body is made by Hyundai Steel, whereas Japanese automakers would source their steel from a third-party company like Nippon Steel.
Oh, and the transmissions, seats, electronics, infotainment systems, engine control unit (ECU), advanced driver-assistance systems (ADAS) sensors, suspension, and chassis components aren't outsourced either. These are made by Hyundai Mobis, Hyundai TRANSYS, Hyundai KEFICO, or Hyundai WIA. Insane, right?
Aiming to gain a foothold in Southeast Asia
With control of everything from suppliers to manufacturing, robotics and shipping, Hyundai has the capability to meticulously create products that are of the highest quality standards. But as you'll probably notice up to this point, Hyundai has been lacking any vehicles that are mainly catered to Southeast Asia. Prior to the arrival of vehicles like the Creta, Stargazer and Stargazer X, Hyundai had a full lineup of global models, which is all well and good. But these are mostly centered around the tastes of South Korean and Western markets. It was only when Hyundai decided to establish a regional hub in Indonesia that it started to offer regionalized vehicles for Southeast Asia and, thus, affirm its commitment to the region.
You see, for the longest time, Japanese automakers have long been the masters of regionalized cars. Toyota has cars like the Avanza, Vios and Innova, while Mitsubishi has the Xpander and Montero Sport. Now, with Hyundai building a massive plant as well as a research and development center in the region, they are taking Southeast Asia seriously by developing vehicles like the Creta and Stargazer — vehicles that perfectly fit the needs and budgets of the region's vehicle market.
In addition to that, HMMI is also building a battery cell plant together with LG Energy Solutions within its manufacturing complex, which will also help Indonesia achieve its goal of converting its 130,000 government vehicles to electric vehicles (EVs). Currently, the Ioniq 5 is a CKD production vehicle, but with the battery cell plant already under construction, this would mean that its batteries will eventually be locally manufactured as well. The CKD assembly of the Ioniq 5 already helps in making the electric crossover SUV competitively priced in Indonesia, and locally producing the battery would further drive the cost down.
All of these are signs of HMC further increasing its presence and commitment to Southeast Asia. By developing models that meet the needs of the region's customers, as well as creating a manufacturing environment that's human-centric and forward-thinking, HMC is setting a benchmark on operating a company to create competent vehicles for region-specific customers as well as a workplace that gives the people behind the Hyundais we drive a place to call their "second home."
FROM: THE MANILA TIMES
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Building people and cars© Provided by The Manila Times
A factory that just doesn't build cars
Situated at Cikarang, 40 kilometers away from Jakarta, Hyundai Motor Manufacturing Indonesia (HMMI) is Hyundai Motor Company's (HMC) wholly-owned subsidiary and its first factory for Southeast Asia. It is not their first production line in the region though, since the company currently has contract assemblers in Vietnam (Thanh Cong Manufacturing) and Malaysia (Inokom), with most of the production destined for sale in their respective markets only.
HMC's Indonesian plant is located in a massive 77.6-hectare area where 18 hectares is the size of the factory itself. It's a $1.55-billion investment that has a production capacity of 150,000 units per year but with room to expand to 250,000 units annually. The Stargazer and the recently-launched Stargazer X are produced here, along with the Creta. Complete knockdown (CKD) assembly, on the other hand, also exists in HMMI in the form of the Santa Fe and Ioniq 5. While it produces cars mainly for Indonesia and the rest of Southeast Asia, the Creta is exported to South America as well.
You do not have permission to view the full content of this post. Log in or register now.
A line worker inspects the body panels installed by robots. PHOTOS BY ANJO PEREZ© Provided by The Manila Times
You do not have permission to view the full content of this post. Log in or register now.
HMMI is highly automated and robotic, which means that the majority of the stamping to the welding and final assembly has a high degree of automation.© Provided by The Manila Times
You do not have permission to view the full content of this post. Log in or register now.
HMMI now produces the Ioniq 5 electric vehicle.© Provided by The Manila Times
But this is where HMMI sets itself apart from other manufacturing facilities in the region. First and foremost, HMMI is one of the few automotive factories in Southeast Asia and the only one in Indonesia to be fully air-conditioned. Along with the highly automated systems in place, the manufacturing plant is designed around the brand's "Progress For Humanity" mantra. So, HMMI is a plant that doesn't just build cars — it also builds employee welfare by putting the workforce's needs at the forefront, thanks to a climate-controlled environment as well as using wearable robotics to support the mobility of factory workers. These wearable robotics don't use batteries, mind you, and these help employees in lifting heavy objects or reduce muscle fatigue in assembly lines that require bending joints for long periods of time.
HMMI's human-centered approach to its employees doesn't just end at the production line. That's because there is a heavy emphasis not just on the usual safety aspect, but also in terms of physical and mental health. There's a clinic and even a psychological center to look after the well-being of employees. The religious and gastronomical needs of the employees are also met with the integrated mosque inside the plant along with a halal-certified canteen. Indonesia, after all, has the world's biggest Muslim population.
Part of its human-centered approach is the use of 100-percent renewable energy achieved through the use of solar panels producing 3.2 megawatts (MW) of energy. The solar panels contribute to 5 percent of HMMI's energy requirement. Does that mean the remaining 95 percent is from fossil fuel sources? Not quite. Just recently, HMMI has been sourcing the rest of its energy needs from the PLN Kamojang Geothermal Power Plant, which is located in Bandung, West Java.
More than just an automaker
But there's another thing I noticed while roaming around Hyundai's Indonesian plant. As mentioned, HMMI is highly automated and robotic, which means that the majority of the stamping to the welding and final assembly has a high degree of automation. What you will notice is that, unlike most automakers who outsource their equipment, Hyundai uses its own robots. Not only that, but a lot of Hyundai's vehicle components aren't sourced from third-party suppliers, either.
To understand, you have to look at Hyundai as a whole. HMC actually has a parent company called Hyundai Motor Group (HMG) and this is where things get interesting. HMG isn't just involved in the manufacturing of the vehicles and its own vehicle components (which is already a rarity in the industry), but the conglomerate also has activities and interests in shipping, logistics, construction, and robotics. HMG, as it stands, is very much a vertically integrated company, which means its production costs are as competitive as it could be. Additionally, by having a supply chain that it could call its own, including the logistics aspect, HMG could maintain a high standard of quality from raw materials to the actual finished product.
Those giant stamping robots you see? That's made by Hyundai Rotem, which also makes trains and defense equipment. Your Hyundai and Kia (because Kia is part of HMG) were shipped to the Philippines by HMG's shipping and logistics division, Hyundai Glovis, using some of the world's biggest ships made by none other than HD Hyundai — a related but different company from HMG involved in heavy-duty industries. HD Hyundai also has a heavy-duty robotics division, and it is also responsible for the automation and the robots used in HMMI's production lines. Even the steel in a Hyundai's body is made by Hyundai Steel, whereas Japanese automakers would source their steel from a third-party company like Nippon Steel.
Oh, and the transmissions, seats, electronics, infotainment systems, engine control unit (ECU), advanced driver-assistance systems (ADAS) sensors, suspension, and chassis components aren't outsourced either. These are made by Hyundai Mobis, Hyundai TRANSYS, Hyundai KEFICO, or Hyundai WIA. Insane, right?
Aiming to gain a foothold in Southeast Asia
With control of everything from suppliers to manufacturing, robotics and shipping, Hyundai has the capability to meticulously create products that are of the highest quality standards. But as you'll probably notice up to this point, Hyundai has been lacking any vehicles that are mainly catered to Southeast Asia. Prior to the arrival of vehicles like the Creta, Stargazer and Stargazer X, Hyundai had a full lineup of global models, which is all well and good. But these are mostly centered around the tastes of South Korean and Western markets. It was only when Hyundai decided to establish a regional hub in Indonesia that it started to offer regionalized vehicles for Southeast Asia and, thus, affirm its commitment to the region.
You see, for the longest time, Japanese automakers have long been the masters of regionalized cars. Toyota has cars like the Avanza, Vios and Innova, while Mitsubishi has the Xpander and Montero Sport. Now, with Hyundai building a massive plant as well as a research and development center in the region, they are taking Southeast Asia seriously by developing vehicles like the Creta and Stargazer — vehicles that perfectly fit the needs and budgets of the region's vehicle market.
In addition to that, HMMI is also building a battery cell plant together with LG Energy Solutions within its manufacturing complex, which will also help Indonesia achieve its goal of converting its 130,000 government vehicles to electric vehicles (EVs). Currently, the Ioniq 5 is a CKD production vehicle, but with the battery cell plant already under construction, this would mean that its batteries will eventually be locally manufactured as well. The CKD assembly of the Ioniq 5 already helps in making the electric crossover SUV competitively priced in Indonesia, and locally producing the battery would further drive the cost down.
All of these are signs of HMC further increasing its presence and commitment to Southeast Asia. By developing models that meet the needs of the region's customers, as well as creating a manufacturing environment that's human-centric and forward-thinking, HMC is setting a benchmark on operating a company to create competent vehicles for region-specific customers as well as a workplace that gives the people behind the Hyundais we drive a place to call their "second home."
FROM: THE MANILA TIMES