Hyundai Motor Group is increasing its presence in the ASEAN market, investing $1.55 billion to set up a plant in Indonesia and have it as a regional manufacturing base, Korea's largest automaker said Tuesday.

Axar.az reports citing Koreatimes that the new plant will enable the carmaker to boost its market share in Southeast Asian countries and compete more effectively with Japanese rivals, which have been dominating the region's car market for years.

During a ceremony at a Hyundai Motor plant in Ulsan, the group's Executive Vice Chairman Chung Euisun and Indonesian President Joko Widodo signed an MOU on building a plant capable of assembling 250,000 vehicles a year in Deltamas industrial town in the city of Bekasi.