SOUTH KOREA REPORT
Hyundai Motor in August announced plans to expand its lineup of hybrid vehicles from seven to 14 models in response to slowing global demand for electric vehicles. The company will also use HVs for the first time in its Genesis luxury car brand. The company also announced plans to increase its annual global sales volume by 30% from 2023 to 5.55 million units by 2030, and to invest 120.5 trillion won (about 13 trillion yen) in R&D and capital investment over the 10 years out to 2033. The company will focus on advanced technologies such as next-generation HVs, in-vehicle batteries and automated driving technology.
Source: The Nikkei
PSR Analysis: Hyundai Motor’s shift in strategy is aimed at responding quickly to the changing needs of the global market. Several EV battery fires have occurred in Korea, and these incidents have contributed to a slowdown in domestic sales of BEVs.
Not only Hyundai Motor, but many other automakers are seeking strategies to respond to the slowdown in demand for EVs, but if HVs grow, competition with Toyota is inevitable. Toyota has a wealth of knowledge about HVs and is one step ahead of the competition in the HV market.
It is not clear which direction the global automotive market will take. When the EV shift began, many predicted that BEVs eventually would account for 90% of the market, but this does not seem likely. I believe that the tidal wave will not be consolidated into one type of vehicle, and that we will see a diversification of powertrains, including FCVs and ICEs. PSR
Akihiro Komuro is Research Analyst, Far East and Southeast Asia, for Power Systems Research
