Hyundai Motor Company is expanding its partnerships with global firms to secure price competitiveness. As pressures mount to raise vehicle prices due to rising raw material costs and the introduction of advanced features, the company aims to achieve economies of scale.
During a press conference following the '2026 Hyundai CEO Investor Day' at the Conrad Hotel in Yeouido, Seoul, Hyundai executives outlined this strategy.
This approach is seen as a response to Chinese automakers, which have rapidly increased their global market share by emphasizing lower prices.
Hyundai emphasized its intention to enhance cost competitiveness by leveraging its position as one of the world's top three automakers in terms of sales volume.
Jose Munoz, President of Hyundai Motor, stated, "We believe we can continuously improve and significantly enhance our competitiveness by utilizing our economies of scale. We are already competing with various rivals, including those from China, in several markets, so we must continue to strengthen our market competitiveness."
Munoz also addressed the recent controversy surrounding the price increase of the new Avante model. He explained that the rise in vehicle prices is influenced by a combination of factors, including the burden of raw materials and logistics costs, as well as the trend toward larger vehicles and the incorporation of advanced technologies and premium materials.
He noted, "Price is one of the primary factors consumers consider when choosing a vehicle. The technology in vehicles today includes features that were unimaginable five years ago, and as vehicles have grown larger, we are using better materials."
However, he emphasized that an increase in production costs does not automatically lead to a rise in vehicle sales prices. The final selling price is determined by market conditions and consumer choices.
Munoz remarked, "It is clear that costs and prices are different. Prices are determined in the market." He added, "While price competitiveness is important to us, we must also consider profitability."
Hyundai is also accelerating the introduction of new models and next-generation electrification technologies to enhance product competitiveness. The company plans to utilize existing platforms for extended-range electric vehicles (EREVs) to respond quickly to market changes, with an EREV model based on the Santa Fe set to launch next year.
The technology from Hyundai Motor Group's autonomous driving software subsidiary, Atria AI, is expected to be gradually applied to vehicles starting in 2028. Atria AI will expand to mass-produced vehicles from 2029, building a lineup of autonomous driving capabilities from Level 2+ to Level 4.
* This article has been translated by AI.
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