Hyundai Motor Group is looking to prepare its strategies on sales, business, and production in the U.S. as Joe Biden is set to be inaugurated as the next president of the U.S. It is going to diversify its lineup of BEVs (Battery Electric Vehicle) and it has decided to expand production and charging infrastructures in respond to possible changes in the North American market.
The number of Hyundai Motor Group’s BEVs will increase from four vehicles to eight vehicles next year. This jump (Ioniq 5, Imagine, eGV80, JW) is the highest out of the global automotive industry. All four new electric vehicles are based on Hyundai Motor Group’s first electric vehicle platform called E-GMP.
However, its strategy on BEV production will be changed drastically. It plans to manufacture around 100,000 units per model in 2021 for the South Korean and European markets. Although it has been manufacturing “Kona Electric” from its plant in Nosovice, Czech Republic since March, the annual output of Kona Electric is only around 30,000 units. In order to deal with changes taking place in Europe next year due to regulations on emission gas, it needs to manufacture and sell at least 200,000 electric vehicles. Hyundai Motor Company and Kia Motors decided to postpone release dates of Kona Electric and “Soul EV” in the U.S. due to lack of production early this year and moved their U.S. supplies to Europe.
While it is already burdensome to deal with changes in the European market, Hyundai Motor Group is also faced with possible challenges in North America. There is a high chance that President-elect Joe Biden will look to increase average mileage of cars in the U.S. to 23.2 km/l by 2025 and enforce a restriction policy that will levy fines on automotive manufacturers if their products do not mee the requirement. Also, the Biden administration plans to limit recipients of electric vehicle incentives to products that are made in the U.S. Although “USMCA” is a trade agreement between the U.S., Canada, and Mexico, it is an industry protection policy that increases rate of procurement of American parts in order to increase automobile production in the U.S. Ultimately, the Biden administration will provide incentives to automotive manufacturers that manufacture electric vehicles in the U.S. using American parts.
Not only Hyundai Motor Group needs to increase electric vehicle sales in the U.S., but it also needs to manufacture its vehicles in the U.S. as well. Also, it needs to establishing charging infrastructures in the U.S. just like it did in Europe by agreeing to join “IONITY”. A spokesperson for the group on Monday said that the group is paying careful attention to next moves by the Biden administration as the group expects the administration will put out new policies on eco-friendly car and industry protection.
President-elect Joe Biden put out a presidential election pledge that his administration will provide incentives for people who have old cars and purchase electric vehicles and install 500,000 electric vehicle charging stations throughout the country. He also announced a plan of changing 3 million official vehicles with electric vehicles.
Staff Reporter Park, Taejoon | gaius@etnews.com