🧠 Food for thought

Implications, context, and why it matters.

Hyundai’s reset comes after a steep sales slide and a soft EV debut

• Hyundai’s share of China’s car market has dropped below 1%. In 2016, it sold more than 1 million vehicles there 1.
• By 2024, Beijing Hyundai, its joint venture with BAIC Motor Corp, sold about 180,000 cars 1.
• The shift comes after a muted launch for the Elexio SUV, a China-only EV that sold 228 units in December after going on sale last year 1.
• The model landed in a tough middle ground. It was not firmly premium, and its price did not compare well with Chinese rivals 1.

Foreign carmakers are giving up control to fit into China’s tech market

• Hyundai plans to do more than add models. It is also tying itself more closely to Chinese tech suppliers 2.
• Under a partnership with CATL, future Beijing Hyundai EVs will use CATL batteries. The venture is expected to release more than 10 EVs with CATL technology, including cell-to-pack (CTP), a design that places battery cells directly in the pack to save space 3.
• The move marks a sharp turn for foreign brands, which have struggled to match Chinese EV makers on technology and price 1.
• To lower expenses, Hyundai is also leaning on BAIC Motor Corp for joint procurement and sourcing 2.