Hyundai doubles down on EV push in China comeback bid

Hyundai Motor said in it will step up its EV push in China, after weak results in the market and a delayed new energy vehicle strategy.

Hyundai and Kia sold about 450,000 vehicles in China last year, underscoring its need to rebuild share.

Hyundai unveiled two IONIQ concept models for China and said its first local production EV model will debut at the Beijing auto show later this month.

Future China EVs will use driver assistance technology from Momenta and include range-extended variants to better compete with local brands.

🔗 Source: China Daily

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Hyundai’s China reboot follows a sharp market decline

Beijing Hyundai’s sales in China fell from 1.1 million vehicles in 2016 to 385,000 in 2021, according to Yicai Global, a Chinese business news outlet 1.
Chinese buyers also turned away after South Korea deployed a U.S. missile defense system. Hyundai’s China sales dropped 64% in the April–June quarter of 2017 versus a year earlier 2.
The slide left Hyundai with unused factory capacity in China. It had five large plants with almost 1.7 million vehicles of annual capacity, per Yicai Global 1.
Hyundai’s China joint venture (JV) suspended operations at its Chongqing plant, according to an insider cited by Yicai Global. It also sold its No. 1 Beijing plant to Li Auto, a Chinese electric vehicle maker, after pausing production there for two years 1.

Hyundai’s new China playbook diverges from its global EV approach

The relaunch goes past importing existing global Ioniq models. Hyundai plans a China-specific Ioniq lineup with a separate design direction and planet-based names 3.
“In China, For China, To Global” also covers technology. Hyundai is working with Momenta, a Chinese autonomous driving startup, to build self-driving systems tuned to China’s road conditions 4.
The lineup will include extended-range electric vehicles (EREVs), which use a battery-powered drivetrain with a small engine to recharge the battery, plus battery-electric models 4.
This heavy China focus marks a new tack for foreign auto brands trying to win back mindshare in China’s fast-moving EV market 5.