The Hyundai Motor Group, currently the world's third-largest automaker, is accelerating its bid to enter the global top two. As Chinese electric vehicle manufacturers intensify their competition, Volkswagen Group, currently in second place, is facing challenges that may open new opportunities for Hyundai.
According to industry sources, the strategies of Volkswagen and Hyundai for 2030 are diverging. Earlier this month, Volkswagen announced its 'Future Plan 2030,' setting an annual sales target of 9 million vehicles, similar to last year's global deliveries of 9.02 million. Instead of aggressively increasing sales, Volkswagen is focusing on improving its cost structure and profitability by reducing workforce, vehicle types, and excess production capacity.
In contrast, Hyundai and Kia presented their 2030 sales targets during their respective 'CEO Investor Days' this year, aiming for 5.55 million and 4.13 million vehicles, respectively. Combined, this totals 9.68 million, which is 2.41 million more than the approximately 7.27 million vehicles sold by Hyundai and Kia last year. If these plans materialize, Hyundai could surpass Volkswagen in sales volume.
Volkswagen, which has held the second spot in the global automotive market for several years, is undergoing significant restructuring. Faced with poor sales in China and declining profitability, the company has initiated a rigorous overhaul, planning to reduce its global workforce by 100,000 as part of its restructuring efforts.
The crisis for Volkswagen originated in China, once its largest market. Local competitors like BYD have flooded the market with competitively priced electric vehicles, rapidly diminishing Volkswagen's market share. In the first half of this year, vehicle sales from Volkswagen's joint ventures in China fell to 856,000, down 386,000 (31.1%) from 1.24 million during the same period last year.
The gap between Hyundai and Volkswagen in the global market is narrowing quickly. In terms of wholesale sales, Volkswagen's global sales in the first half of this year were approximately 3.99 million, about 400,000 more than the combined sales of Hyundai and Kia, which totaled around 3.59 million. Last year, Volkswagen sold about 4.36 million vehicles, while Hyundai and Kia sold about 3.65 million, indicating a reduction in the gap by 310,000 in just one year.
Hyundai is currently leading in profitability. In the first half of this year, the combined operating profit of Hyundai and Kia reached 10.1992 trillion won. In comparison, Volkswagen reported an operating profit of 5.9 billion euros (approximately 9.22 trillion won) during the same period. For the entire previous year, Hyundai and Kia's combined operating profit was 20.546 trillion won, surpassing Volkswagen's approximately 8.9 billion euros.
Industry analysts suggest that if the current trends continue, Hyundai could catch up to Volkswagen's sales figures before 2030. With competitive advantages in electric vehicles, hybrid technology, local production expansion, and robotics, Hyundai's growth trajectory appears promising.
Kim Pil-soo, a professor at Daelim University’s Department of Future Automotive Studies, stated, "The quantitative and qualitative gap between Hyundai and Volkswagen has significantly narrowed. If the current trend continues, I believe Hyundai has a chance to rise to the global second position in terms of both quantity and quality within the next two years."
* This article has been translated by AI.
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