Hyundai Motor to Mass-Produce Next-Generation Electric Vehicle 'Ioniq 5' in February Next Year

Completion of Electric Vehicle Dedicated Line Installation Construction by Early Next Year

Rendering image of the Ioniq brand lineup. From the left, Ioniq 6, Ioniq 7, Ioniq 5 (Photo by Hyundai Motor Company)

[Asia Economy Reporter Kim Ji-hee] Hyundai Motor Group's dedicated electric vehicle brand Ioniq's first model, the 'Ioniq 5,' will begin mass production in February next year. The plan is to complete the conversion of part of Ulsan Plant 1's line into an electric vehicle-only line by early next year and then start full-scale production.

According to industry sources on the 28th, Hyundai Motor held a briefing at Ulsan Plant 1 the day before and decided to carry out a shutdown construction for installing the electric vehicle-only line for about fifteen days starting December 19. This is the second construction following the first one around this summer. After completing the construction by January 3 next year, mass production of the Ioniq 5 is scheduled to begin in mid-February.

Originally, the Ioniq 5 was planned to start production immediately from January 3, when the plant resumes operation next year. However, due to delays in line construction caused by the impact of COVID-19 and other factors this year, the mass production schedule was postponed by about a month and a half. Since it is Hyundai's first mass-produced vehicle equipped with the dedicated electric vehicle platform (e-GMP), it is known that there are still matters requiring consultation with the labor union. As mass production is delayed, some adjustments are also expected in the Ioniq 5's launch schedule, which was anticipated for March next year.

The Ioniq 5 is the model that kicks off Hyundai Motor's dedicated electric vehicle brand 'Ioniq,' launched last August. Unlike existing electric models that partially modify the internal combustion engine vehicle frame, it uses a dedicated platform and is expected to be the first model of Hyundai Motor Group's next-generation electric vehicles. The Ioniq 5's design was inspired by the electric concept car '45,' unveiled at the Frankfurt Motor Show in Germany last September. The dedicated platform enhances interior space and significantly improves key electric vehicle elements such as charging time and driving range. Hyundai is preparing for a driving range of over 450 km with a 20-minute charge.

Hyundai Motor Group aims to make next year the first year of a leap in the electric vehicle market and plans to sell 1 million electric vehicles by 2025, achieving a global market share of over 10%. The Ioniq brand is the central axis of this vision. Hyundai plans to sequentially launch three new models by 2024, including the compact crossover utility vehicle (CUV) Ioniq 5 next year. These include the 2022 mid-size sedan 'Ioniq 6' and the 2024 large sport utility vehicle (SUV) 'Ioniq 7.' Kia will also release its first model equipped with e-GMP, the 'CV,' next year.

With the Ioniq 5 leading the way, Hyundai Kia is expected to accelerate its goal of becoming a 'Top 3' player in the global electric vehicle market. This year, Hyundai Kia has rapidly expanded its presence in the global electric vehicle market, rising to the top 5. According to SNE Research, from January to August this year, Hyundai Kia sold 74,000 pure electric vehicles (EVs) worldwide. Sales increased by 35.1% compared to the same period last year, raising the market share to 7.7% (4th place).

An industry official said, “Since the Ioniq 5 is a model that signals a new start for Hyundai Motor Group's electrification strategy in the global market, the group is making every effort until just before its launch,” adding, “Starting with the Ioniq 5, changes are expected in production, marketing, and other existing methods.”