As competition intensifies in China’s electric vehicle market, where low-cost newcomers threaten traditional players like Hyundai, the Korean automaker is developing a strategy to stay ahead of the curve. Hyundai is investing heavily to introduce its inaugural dedicated electric vehicle (EV) in China, set to debut next year according to a recent report.
While electric vehicle sales continue their upward trajectory in China, the world’s largest EV market, many legacy automakers face significant challenges in adapting to this shift.
According to the latest statistics from the China Association of Automobile Manufacturers (CAAM), as of September, China purchased a total of approximately 1.29 million new electric vehicles (EVs) and plug-in hybrid electric vehicles (PHEVs), representing a 17% increase from August and a remarkable 42% year-over-year surge.
As interest in ICE vehicles wanes, electric vehicle sales surged ahead, capturing a 51.8% market share of total auto sales last month – a milestone marked for the second consecutive period.
Individuals who have taken a gradual approach to change are now reaping the benefits of their perseverance and patience. As the Chinese market rapidly transitions to electric vehicles, leading manufacturers like Toyota, Volkswagen, General Motors, and Honda have been forced to reduce their workforce in the region.
Hyundai has been no exception. Beijing Hyundai’s gross sales have struggled to recover since 2017, when a decline in demand and increased competition started taking its toll. As of September, Hyundai and Kia’s collective market share in China plummeted to a mere 1.2% by that time.
Despite the challenges, Hyundai may still find a way to turn the tables and overcome its difficulties. On October 18, Hyundai Motor China Superior Tech and R&D Middle turned impartial in Shanghai. The ability is Hyundai’s first abroad digital R&D heart and can spearhead the automaker’s return.
Hyundai plans to launch electric vehicles (EVs) in China by 2025 as part of a strategy to counter low-cost competitors.
Yang Feng, the chief supervisor of Hyundai’s new analysis and development facility, revealed in a recent interview with a Shanghai-based information outlet that the company is poised to introduce its first dedicated electric vehicle (EV) tailored specifically for the Chinese market next year.
Unlike other EVs, a bespoke mannequin will be specifically tailored to meet the unique needs of Chinese customers, boasting advanced technology and innovative designs.
Yang Feng, the primary worker recruited by Hyundai China’s superior tech R&D heart, mentioned the ability combines self-development with cooperation with native suppliers. The solution also comprises prominent technology vendors.
Hyundai is collaborating with Thundersoft, a renowned cockpit supplier, and Jianzhi Robotics, a cutting-edge autonomous driving technology company in China, to power its next-generation electric vehicles.
Although Hyundai acknowledges its recent struggles, the company is optimistic that by combining its manufacturing expertise with indigenous technology, it can swiftly bridge the gap with domestic automakers. Hyundai could potentially create bespoke electric vehicle (EV) platforms tailored specifically for the Chinese market.
While some international manufacturers may be considering a shift away from China to safeguard their profits, according to Fang Yinliang, global director and partner at McKinsey, they are likely to return to the country for its cutting-edge technology.
“Yinliang noted that, regardless of whether it’s foreign-funded auto manufacturers or component suppliers, they are likely to see an increase in investment within China.” It’s not nearly organising R&D facilities however investing in revolutionary Chinese language firms “which can feed again to the worldwide market.”
The tech from its new R&D heart in China shouldn’t be solely anticipated to assist enhance gross sales within the area however is also used for Hyundai and Kia’s world exports.
Electrek’s Take
Despite aggressive global expansion plans, Hyundai’s footprint in China has remained relatively modest. The automaker believes its new superior tech R&D heart will assist flip issues round rapidly, with its first devoted EV launching subsequent yr.
With multiple players vying for access to China’s electric vehicle technology, Hyundai would be remiss to stand alone in its pursuit. Volkswagen has deepened its collaboration with XPeng, aiming to debut their first jointly developed electric vehicle in China by 2026.
Mercedes-Benz is poised to introduce a revolutionary new electric vehicle (boasting end-to-end capabilities) in 2026.
As Chinese automakers expand their presence globally, seeking growth opportunities in established markets such as Europe, Southeast Asia, and Latin America, Korean manufacturers including Hyundai are poised to mount a counteroffensive.
