"In China, For China, To Global" (Hyundai President Jose Munoz)
Hyundai Motor Group is launching what it calls a second leap in China, 24 years after entering the market. The company said it will move away from an image built around value-priced internal combustion vehicles and reposition itself as an eco-friendly brand centered on electric vehicles.
The group said it aims to build a lineup of six new EV models tailored to China by 2030 and to surpass annual sales of 500,000 vehicles.
Hyundai Motor Group said it will formally declare a shift to a new-energy vehicle, or NEV, brand at the 2026 Beijing International Motor Show, known as Auto China 2026, which opens April 24 local time. It also plans to unveil the first China-produced mass-market model under its Ioniq brand.
The move marks the biggest change in Hyundai Motor Group’s local strategy since Hyundai Motor and Beijing Automotive Group formed their 50-50 joint venture, Beijing Hyundai, in October 2002.
Hyundai is seeking a comeback in China. As recently as 2016, it posted double-digit combined market share, with Beijing Hyundai at 6.5% and Dongfeng Yueda Kia at 3.7%, and was grouped with Volkswagen and General Motors as one of the market’s top three foreign players. Its business contracted sharply after the dispute over the THAAD missile defense system, followed by a boycott of South Korean products. The company also struggled to keep pace with China’s rapid advances in EVs and autonomous driving.
Over the past decade, China’s auto market has shifted from internal combustion vehicles to NEVs. EV makers such as BYD and Geely have moved into the leading ranks, and Huawei has entered the auto sector through electronics and semiconductors. According to a survey by the China Automotive Research Institute, NEVs account for 54% of new-vehicle sales in China, where demand is strong for advanced technologies including autonomous driving.
Hyundai said localization is its top priority, beyond simply introducing new EV models. It has applied autonomous driving technology developed by Chinese IT company Momenta to new vehicles and plans to build an “Ioniq ecosystem” combining services reflecting local preferences and charging infrastructure.
Hyundai also said it is targeting a 2027 launch for an extended-range electric vehicle, or EREV, designed for China’s long-distance travel patterns and charging conditions. The company described the EREV as running on battery power in normal use, while using fuel to generate electricity for the motor on longer trips.
Hyundai said oversupply in China’s market and shifts in government policy could also work in its favor. Under China’s 15th five-year plan for 2026-2030, the government has narrowed support by classifying only “intelligent connected NEVs” as an emerging industry. A subsidy program for replacing older vehicles with NEVs, known as “yigu huanxin,” has also been revised from a fixed-amount system to a percentage-based one, which Hyundai said could push consumers toward AI-enabled smart NEVs or premium brands.
With local brands strong in mass-market EVs, Hyundai said it plans to build an image as a premium AI smart-car brand to target areas where domestic competitors are weaker. Kia is also accelerating its electrification shift in China. Kia is producing the EV5, unveiled at the Chengdu motor show in August 2023, at its Yancheng plant and exporting it to markets including China, Central and South America, and Australia.
Hyundai Motor Group said it is also strengthening cooperation with Chinese companies in future industries. In January, group executives discussed broad cooperation with major firms in batteries, energy and autos, including CATL, Sinopec and Yueda Group, to review technology trends in China and refine mid- to long-term strategy.
With CATL, Hyundai said it exchanged views on next-generation battery technologies such as cell-to-pack, or CTP, and on building a stable supply chain. With Sinopec, it agreed to cooperate on developing a hydrogen ecosystem centered on its hydrogen fuel cell system venture in Guangzhou, HTWO Guangzhou. The group said it also agreed with Kia’s local joint-venture partner, Yueda Group, to pursue a sustainable business structure spanning batteries, hydrogen and future mobility beyond finished-vehicle sales.
* This article has been translated by AI.
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