Hyundai Motor Group has developed a roadmap to revive its struggling operations in China, where sales of the Hyundai and Kia brands have declined to below 360,000 in 2022 from a peak of 1.8 million in 2016. The group’s two joint ventures in China, Beijing Hyundai and Yueda Kia, will continue to assemble new and upgraded gasoline models while expanding their product lineups with more pure electric vehicles. Beijing Hyundai plans to launch four to five locally produced EV models from 2023 to 2025, while Yueda Kia plans to launch six EV models from 2023 to 2027. The joint ventures also plan to boost vehicle exports.
According to a recent report by Automotive News, Hyundai Motor Group is taking a multi-pronged approach to revive its operations in China. The Korean auto giant has been struggling to make headway in the Chinese market, with combined sales of the Hyundai and Kia brands shrinking from a peak of 1.8 million in 2016 to below 360,000 in 2022.
To address these challenges, Hyundai has outlined a comprehensive roadmap for its operations in China, which includes plans to expand its electric vehicle (EV) offerings and boost vehicle exports from its joint ventures with Chinese partners.
At present, Hyundai builds Hyundai-branded passenger vehicles with state-owned Chinese automaker BAIC Motor Co., and produces cars for Kia with Yueda Group Co., a state-owned Chinese business conglomerate. The two joint ventures each retain two major assembly plants, and will continue to assemble new and upgraded gasoline models. However, to boost sales, they will both expand their product lineups with more pure electric vehicles.
Under a plan released in December, Beijing Hyundai will launch four to five locally produced EV models developed on Hyundai’s new EV platform known as E-GMP from 2023 to 2025. Yueda Kia, on the other hand, plans to launch six E-GMP-based EV models in China from 2023 to 2027, according to the “new energy vehicle strategy” it laid out in March.
Hyundai and Kia currently have only one EV product to sell in China: the battery variant of the Hyundai Mistra sedan and the battery version of the Kia K3 sedan. By rolling out more EV models, Beijing Hyundai expects its annual EV sales in China to reach 200,000 by 2025, while Yueda Kia hopes to raise its yearly EV deliveries to 180,000 by 2027.
To turn around its unprofitable operations, Hyundai Motor Group also plans to boost vehicle exports from the two joint ventures. Beijing Hyundai targets to increase annual exports to more than 100,000 in 2025, while Yueda Kia plans to turn one of its two plants into “an global export center,” which is expected to boost annual exports to 200,000 in 2026.
While these efforts are still in their early stages, Hyundai’s multi-dimensional approach to reviving its operations in China is a promising sign for the company and its investors. With a renewed focus on EVs and vehicle exports, Hyundai is positioning itself for long-term success in one of the world’s largest and most competitive auto markets.
