Hyundai Holds Prices Amid Production Cost Pressures, Prepares New Model for GIIAS 2026

PT Hyundai Motors Indonesia (HMID) has chosen to hold vehicle selling prices amid production cost pressures. Despite uncertain geopolitical conditions, HMID is making every effort to increase sales, including by preparing the launch of a new model for the Indonesian market this year. Chief Operating Officer of HMID, Fransiscus Soerjopranoto, stated that Hyundai has no plans to raise vehicle prices at this time. However, several cost components have experienced increases. Pressures stem from raw material prices, particularly plastics, as well as the weakening rupiah exchange rate, which once breached Rp17,000 per US dollar. These conditions have increased the production burden on the automotive industry. Nevertheless, Hyundai has opted to absorb these rises. The company is implementing efficiencies across various lines, from manufacturing processes to distribution. “It will not be passed on to consumers or dealers,” Fransiscus said. This strategy is adopted to maintain public purchasing power. Hyundai also aims to preserve the stability of the national automotive market amid dynamic economic conditions. The company affirmed that it will uphold this policy for as long as possible. Decisions will continue to be adjusted based on industry conditions and consumer interests. The price increase in plastics itself is quite significant. In April 2026, the price of this material was reported to surge by 30–70 percent, with some reaching 100 percent.