Localization, Electrification, and Image Renewal... Hyundai Motor and Kia Unveil Strategies for Rebound in the Chinese Market

China Strategy Presentation 'Rising Again, For China' Successfully Concluded

[Asia Economy Reporter Yoo Je-hoon] Hyundai Motor and Kia are strengthening localized research and development (R&D) and electrification to make a comeback in the Chinese market, while expanding the hydrogen industry ecosystem and renewing their brand image.

Hyundai Motor and Kia revealed these plans at the China strategy presentation "Rising again, For China," held through an online channel on the 15th.

Lee Kwang-guk, Head of Hyundai Motor and Kia's China Business Division, who gave the presentation, said, "China, the world's largest automobile market and the fastest-growing market globally, is full of new opportunities and challenges," adding, "We will seize the future mobility era and achieve a comeback through the four major strategies prepared to target the Chinese market."

First, Hyundai Motor and Kia will strengthen localized R&D and marketing to develop products and services tailored to the characteristics of the Chinese market. To this end, they will establish an advanced digital research center in Shanghai in the second half of the year to develop technologies related to autonomous driving, connected cars, electrification, and shared mobility. They expect synergy effects between the existing China Technology Research Center in Yantai and the Shanghai Digital Research Center.

The electrification lineup will also be significantly expanded. Hyundai Motor and Kia will start with their first dedicated electric vehicle models, the Ioniq 5 and EV6, and from next year, they will release electric vehicle models annually in the Chinese market. They also plan to launch various electrified models, including hybrid models and hydrogen fuel cell vehicles, aiming to build a total of 21 electrified lineups by 2030.

They will also expand the hydrogen industry ecosystem in China. First, in the second half of 2022, HTWO Guangzhou, Hyundai Motor Group's first overseas hydrogen fuel cell system production and sales corporation, will open. With HTWO Guangzhou, which spans approximately 207,000 square meters, they plan to actively establish a hydrogen ecosystem in the Chinese market. Additionally, in the second half of this year, they will launch the 'Nexo,' the world's best-selling hydrogen fuel cell vehicle, in China.

They will also work on renewing their brand image. Beijing Hyundai will nurture the innovative brand through the China-exclusive technology brand 'H SMART+' introduced last year, while Dongfeng Yueda Kia aims to renew its image through brand relaunch activities currently underway, starting with the domestic market.

Along with this, Hyundai Motor and Kia will optimize their product lineup. The current 21 internal combustion engine models will be reduced to 14 by 2025, and they plan to improve the product competitiveness of mid-to-large premium model lineups, such as C and D segment sport utility vehicles (SUVs) and D segment passenger cars. New models like the new Cipa will also be launched in the first half of this year.

In particular, Beijing Hyundai plans to introduce a China-exclusive multipurpose vehicle (MPV) and Tucson hybrid in the second half of the year, while Dongfeng Yueda Kia will launch the new Carnival, entering segments where they previously did not operate, to respond to the diverse needs of the Chinese market.