[Car Talk Forest] Hyundai, Which Defeated Mercedes-Benz and BMW in Europe, What Is the Secret?

Hyundai Ioniq 5

[Asia Economy Reporter Changhwan Lee] Hyundai Motor and Kia have delivered good news from Europe since the beginning of the year. They announced that they recorded their highest-ever market share in the European market last year.

Hyundai Motor and Kia sold a total of 1,018,563 units in Europe last year. Sales increased by 21.1% compared to the previous year. In particular, their market share rose by 1.7 percentage points to 8.7%, marking the highest market share ever.

Following Volkswagen Group (25%) in first place, Stellantis Group (20.2%) in second, and Renault Group (9.3%) in third, Hyundai Motor Group ranks fourth. In Europe, the birthplace of automobiles, Hyundai Motor Group surpassed strong competitors such as BMW Group (7.3%), Daimler Group (6.5%), and Toyota Group (5.8%).

The secret to Hyundai Motor and Kia's success in Europe is quality above all else. They have made significant efforts to improve the fundamental quality of their vehicles. They spared no expense in recruiting excellent overseas talent and invested heavily in research and development (R&D).

As a result, they have swept various awards locally in Europe. Hyundai’s dedicated electric vehicle Ioniq 5 was selected as Car of the Year in Germany and the UK, and Kia’s EV6 was also named Car of the Year in the UK, recognizing their top-quality standards.

Another reason for their success is that despite the high quality, their prices are not higher than those of competitors. Hyundai Motor and Kia mainly sell compact and subcompact sport utility vehicles (SUVs) and hatchbacks in Europe, which are priced lower than luxury models, earning them a reputation as cost-effective brands.

Amid the ongoing global semiconductor supply shortage in the automotive industry, Hyundai Motor Group is also evaluated to have managed semiconductor inventory relatively well. Hyundai Motor and Kia experienced fewer factory shutdowns (temporary work stoppages) compared to other companies. Thanks to this, while total car sales in Europe decreased by 1.5% compared to the previous year, Hyundai Motor and Kia’s sales actually increased.

Hyundai’s eco-friendly vehicle strategy is also well received locally. Europe is advancing eco-friendly policies faster than any other automotive market worldwide. The European Union (EU) has decided to ban the sale of internal combustion engine vehicles locally starting in 2035.

In response, Hyundai Motor and Kia quickly launched their main eco-friendly vehicles such as Kona EV, Niro EV, Ioniq 5, and EV6 locally, attracting great interest from Europeans. Hyundai Motor Group plans to further increase its market share by continuing to release various eco-friendly vehicles including electric cars, hybrids, and hydrogen cars in the European market.