Hyundai Motor Group chairman Euisun Chung recently visited Hyundai Motor Manufacturing Czech Plant (HMMC) located in Nosovice, near Ostrava, Czech Republic to review the current status of the company’s European business and work on future growth strategies.
Europe, which is the world’s second-largest electric vehicle market after China and a battleground for eco-friendly vehicles, has recently been experiencing increasing uncertainty due to the economic slowdown in major countries such as Germany and the United Kingdom, as well as major automakers adjusting the pace of electrification.
According to the European Automobile Industry Association (ACEA), the demand of the European automobile industry reached 7,906,916 units until July this year, an increase of only 3.9% compared to 7,611,988 units in January-July last year. It was less than one-third of the 12.7% annual increase in 2023 compared to 2022.
The slowdown in demand for EVs is even more pronounced. In January-July this year, the demand for electric vehicles in Europe was 1,093,808 units, an increase of only 0.6% compared to 1,087,118 units in the same period last year. In 2023, the overall EV industry demand growth rate was 28.2%.
Working on new growth strategy amidst global uncertainty
The Hyundai Motor Group chairman, observing the rapidly changing situation of the European automobile market, examined major local business issues at Hyundai Motor Company’s Czech plant, which is the only EV production base of Hyundai Motor Group in Europe, and sought new solutions for future growth.
Euisun Chung also toured the production line of the Czech plant, which is accelerating the construction of a smart manufacturing platform in preparation for the era of full-scale electrification, and encouraged executives and employees.
“I would like to thank the employees for their dedication, professionalism, and strong support,” he said, adding that “the Czech plant is a key base for future investment in eco-friendly mobility vision and technology, and it plays a very important role in the continued success of Hyundai Motor Group despite the uncertainty of the global market.”
Euisun Chung said, “We will spare no effort to invest in quality and safety” and emphasised that “quality, service, and securing excellent human resources are important to sustain the excellent productivity and profit and loss of the Czech plant.” He continued, “Although we are suffering from recent tectonic changes in the electric vehicle market, we must further strengthen our unwavering efforts for innovation and sustainable growth.”
European-tailored product mix
Hyundai Motor Group plans to flexibly and nimbly respond to changes in the European automobile market environment to further solidify its position in Europe, the world’s largest eco-friendly car market, and make new breakthroughs for future growth.
In terms of production and sales, the company states that it is flexibly responding to the market environment with flexible production and a European-tailored product mix across the entire lineup of internal combustion engines, hybrids, and EVs, while simultaneously promoting a mid- to long-term strategy to enhance electrification capabilities.
To this end, Hyundai is filling the sales gap caused by the slowdown in demand for electric vehicles with a competitive SUV hybrid model, led by the Tucson Hybrid, which is popular with European customers.
In addition, the company is focusing on the second-generation Kona Electric, which is being produced at a plant in the Czech Republic, the Ioniq 5, Hyundai’s flagship EV model exported from Korea, and the Casper Electric / Inster, which will be launched in Europe in the second half of this year. The Casper Electric, along with the second-generation Kona Electric, are expected to play a strategic role in leading Hyundai’s EV turnaround in the European market.
Furthermore, Kia is strengthening its EV lineup by introducing an improved EV6 model, adding trims that allow customers to purchase the EV9 more economically, and introducing the EV3, which will lead the popularization of EVs, to the European market for the first time overseas in the second half of this year.
The Hyundai Motor Group plans to also pursue growth strategies that can flexibly respond to the trend of electrification in the European market. By introducing special editions of its flagship hybrid and plug-in hybrid models, the company plans to flexibly respond to changes in demand in the European market.
Kia, which plans to enter the European LCV market with its Platform Beyond Vehicles, showcased the PB5 at the IAA Transportation 2024 in Hannover.
In preparation for the time when the European EV market recovers, Hyundai Motor Company will gradually expand the number of locally produced EVs in line with industrial demand according to its mid- to long-term roadmap.
Kia is accelerating the establishment of a local production system for EVs in Europe with the goal of starting operation in the second half of 2025 in Autoland Slovakia. Kia also plans to enter the European light commercial vehicle (LCV) market with its Platform Beyond Vehicles (PBVs). The company showcased its PBV concept models for the first time in Europe at the ‘IAA Transportation 2024’ held in Hannover, Germany earlier this month.
Hyundai Motor Europe Technical Center GmbH (HMETC), one of the world’s key R&D hubs, is also expanding its infrastructure. Hyundai Motor Group aims to strengthen its competitiveness in Europe in various ways, such as developing premium and high-performance models and enhancing the role of the European Technology Research Institute as a base for the development of eco-friendly mobility in the European region.
The European Technical Center will intensify research activities to strengthen the price competitiveness of overseas models and expand local R&D capabilities to support the Group’s entry into the European PBV market.
Lead image: Hyundai Motor Group
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