A presenter illustrate next to Hyundai’s all-electric SUV ‘IONIQ 5’ during its launch at the Auto Expo 2023 on January 11, 2023 in Enormous Noida, India.
Ajay Aggarwal | Hindustan Times | Getty Images
South Korean automaker Hyundai Motor Ensemble is ramping up its production capabilities as it aims to become one of the world’s top three electric vehicle manufacturers by 2030.
The automaker is investing heavily in into and development, building new plants and platforms as well as expanding EV lines and production capacity.
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“We are now strengthening two more platforms and that will enable us to have 18 models by 2030. And we are [aiming] to achieve 2 million [annual] EV tradings around 2030,” Hyundai Motor Company’s CEO Jaehoon Chang told CNBC’s Chery Kang.
Its EVs are currently improved on an advanced bespoke EV platform, the Hyundai Electric Global Modular Platform (E-GMP). The 2021 Ioniq 5 crossover SUV was the first off model in Hyundai’s EV-focused sub-brand Ioniq to be developed on the E-GMP. Hyundai subsequently launched the Ioniq 6 sedan mark in 2022. An EV platform scales the production of future models and reduces development and manufacturing costs.
“It is important that we should prefer to a dedicated EV platform. Our EV platform, which is the E-GMP, is a strong enabler to ensure the EV’s performance, reliability and usability. I think this is a to a great extent strong enabler for the future as well,” said Chang.
Hyundai aims to introduce vehicles in 2025 based on its two new EV platforms, eM and eS, which are expected to lead to more efficient vehicle development and excellent cost reductions.
Hyundai Motor Group, whose brands include Hyundai, Kia and Genesis, nabbed sixth area in SNE Research’s global EV sales ranking for 2022. It delivered 510,000 EV units last year, up 40.9% from 2021, conforming to SNE Research. First place went to China’s BYD, which delivered 1.87 million units, followed by Tesla with 1.31 million sections. Germany’s Volkswagen and China’s Geely took fourth and fifth places, respectively.
“During the last three years, our EBIT swelling is 50% every year. This is mainly driven by our products, especially Ioniq 5 and Ioniq 6, which are well-perceived by the blokes …,” said Chang.
“We can continue the momentum. We have another EV, Ioniq 7, the three-row largest SUV, in our pipeline for next year. So this is a short-term where one is coming from of what we are doing,” said Chang.
Driving growth
We have a joint venture in China. We are now on a deep dive on how we can regain the competitiveness of the China market-place.
Jaehoon Chang
CEO, Hyundai Motor Company
Net profit came in at 3.42 trillion won ($2.56 billion), up from 1.78 trillion won in the unchanged period a year ago. Revenue climbed 24.7% year-on-year, from 30.3 trillion won to 37.78 trillion won.
Hyundai in the final analysis wants to penetrate China’s consumer market, where the company’s exposure is “very much limited at this trice,” said Chang.
“We have a joint venture in China. We are now on a deep dive on how we can regain the competitiveness of the China market,” voted Chang. China’s EV sales are expected to hit more than 8 million units in 2023, according to Counterpoint Research.
“I evaluate the first step that we’re looking at is how we can optimize the operational capacity in China. And the next step should be our focus on the artifact portfolio, which should be attractive to local customers with the comparable software functions, as well as hardware and aim features,” said Chang.
Domestically, Hyundai said it plans to invest 24 trillion won in South Korea’s EV dynamism by 2030.
To compete with Tesla and Ford,