The vacuum left by Dyson has been filled. Hyundai Motor will make electric vehicles (EVs) at a plant in Jurong slated to be up and running by 2022.
The South Korean carmaker's choice to pick Singapore as a manufacturing location is an unprecedented one.
"It is the first time we are picking a country which does not have a car manufacturing industry," an insider told The Straits Times.
Mr Teo Hock Seng, executive chairman of Hyundai distributor Komoco Motors, said the manufacturing of EVs here is a significant milestone. "For us, the most important thing is Hyundai will be made in Singapore," he said.
He added that plans for the plant germinated four years ago, during Komoco's 30th anniversary. High-ranking executives from Hyundai came and met Ministry of Trade and Industry representatives.
"They talked about autonomous vehicles," Mr Teo said, adding that the Economic Development Board (EDB) then followed up, and "encouraged Hyundai to invest in a smart factory in Singapore".
He said Komoco targets to sell 5,000 to 6,000 of the 30,000 electric cars made here a year, and Hyundai will export the rest.
Hyundai will start with an electric compact crossover, which sources say might be called the Ioniq 3.
Groundbreaking for the plant in Bulim Avenue is slated for October.
The plant will be within a 28,000 sq m Hyundai Mobility Global Innovation Centre, which is a multi-function facility that will carry out R&D and training, among other things. Construction was supposed to have started in May, but has been delayed by the Covid-19 pandemic.
The facility will be a modern complex with swathes of solar panels, and will be a test-bed for highly automated, data-driven "smart manufacturing".
A Hyundai Motor spokesman said: "When realised, Hyundai's new manufacturing platform will help make automotive plants safer and greatly diminish the physical burden for workers, using manpower only where necessary."
The facility will also carry out artificial intelligence research and investment activities, and trial new mobility services. Hyundai is also expected to team up with local partners such as universities to carry out hydrogen fuel cell and autonomous driving research.
Without being specific, the spokesman said the facility will create "hundreds of jobs".
He would not reveal the investment sum.
EDB executive vice-president Tan Kong Hwee said: "Technological advancements are transforming the mobility sector with an increase in adoption of electric, connected and autonomous vehicles.
"Attracting quality investments arising from these emerging trends is part of our strategy to grow Singapore's mobility ecosystem. This will not only create exciting job opportunities for Singaporeans, but also benefit adjacent industries which are already well-established here."
This week, Hyundai announced that it will launch a range of numerically named EVs under the Ioniq brand name.
The first will be the Ioniq 5, a midsize crossover based on the concept 45. It will launch early next year.
In March 2022, the Ioniq 6 sedan, which is based on the Prophecy concept, will be unveiled, followed by the Ioniq 7, a large sport utility vehicle, in early 2024.
The Singapore-made car is expected to be the yet-to-be-announced Ioniq 3. More details are expected in October.
British home appliance maker Dyson announced in October 2018 that it would make electric cars in Singapore, only to pull the plug on the venture a year later.
© 2020 Singapore Press Holdings
This article was written by Christopher Tan from The Straits Times and was legally licensed through the Industry Dive publisher network. Please direct all licensing questions to legal@industrydive.com.
