Hyundai Motor plans to ramp-up electric vehicle (EV) production and introduce two new dedicated production lines.
The company intends to spend more than US$87bn over the next five years on the development and production of EVs as well as autonomous vehicles. By 2025, Hyundai plans to expand the portfolio of EVs to 44 models, which will include 23 battery EVs, 13 hybrid, 6 plug-in hybrids and 2 fuel-cell electric models.
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Animesh Kumar, Director of Automotive Consulting at GlobalData, notes that EVs offer significant untapped potential to Hyundai both in the domestic and the overseas market. "The availability of incentives on EV purchase coupled with rising demand for personal mobility due to COVID-19 pandemic has led to increased appetite for EVs in the South Korea market," he says.
According to reports, EV sales in South Korea increased by 23% in H1 2020. The plans to ramp up EV production could also be a strategy to counter the rapid growth of Tesla in South Korea.
"Hyundai has achieved major milestones related to EVs in 2020. It sold the world's first mass-produced fuel cell heavy-duty truck – Hyundai Xcient," Kumar says. "Its all-electric SUV, Hyundai Kona Electric, surpassed global sales milestone of 100,000 units in just over two years since its launch. The sales of Hyundai Kona, including EVs and HEVs, grew by 1.4% in the domestic market and 135% in the export market in H1 2020, according to company sales data. The company also unveiled its visionary 'Prophecy' concept EV."
Kumar believes that after the success of Kona electric and the launch of Xcient, Hyundai looks all set to expedite its penetration in the EV market. Together with its sibling Kia Motors, Hyundai targets 1 million units of EVs in 2025. The company also aims to roll out 1,600 hydrogen-powered trucks by 2025.
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By GlobalDataIn recent months, Hyundai made several EV-related developments that reinforce the strategy, including partnerships with battery manufacturers, technological innovations related to EV components, the launch of new concept vehicles, the development of new EV platforms and other significant investments.
"The company's recent collaboration with tech giants is expected to supplement the company's EV vision through their respective technological expertise," Kumar maintains. "Hyundai has partnered with Arrival Ltd. and Canoo for co-development of all electric platforms for the company's future EVs. The company is also working closely with battery manufacturers including LG Chem, Samsung and SK Group to develop battery technology as well as ensure sufficient supply of batteries for its future EV products. These developments highlight the Korean OEMs march towards electrification."
