Hyundai Motor reorganizes overseas units to expedite its push in Asian markets

Indonesian President Joko Widodo signing on the IONIQ 5 at the opening of Hyundai‘s Indonesian plant on March 16 this year [Source : Hyundai Motor Group]

Hyundai Motor Co. has reorganized its overseas units, establishing a pan-Asia unit, hoping to expand synergy for its push in the Asian market.

According to sources in the industry on Wednesday, South Korea’s top automaker will set up the pan-Asia unit consolidating three organizations, including South Korea, Association of Southeast Asian Nations and Oceania units.

With the reorganization, the firm expects to create synergy through savings in supply chains. In addition, it hopes to leverage its abundant domestic resources to beat Japanese carmakers in the region. It has mass-produced finished cars in Indonesia since March this year, driving its share in the ASEAN market. It ranked eighth in sales in Indonesia, jumping five notches over the year. It is also in an intense race with Toyota to grab the top position in Vietnam.

“We decided to create a pan-Asia organization to enhance synergy among regional offices,” said an official from the firm. The new organization overseeing domestic and Asian markets will be led by Kim Seon-seob, head of the global operations division.

Hyundai Motor shares added 1.6 percent to 158,500 won ($124.18) in late morning session Thursday.