[Global Big 3 Hyundai Motor] Chung Euisun's 'Innovation DNA' Changed 12 Years of 5th Place Record

Complete Vehicle Sales in the First Half of This Year: 3rd Place Following Toyota and Volkswagen
Two-Step Rise After 12 Years Since Ranking 5th in 2010
Visible Achievements Just One and a Half Years After Chairman Jeong Eui-seon's Appointment in 2020

Chairman Chung Euisun of Hyundai Motor Group

[Asia Economy Reporter Choi Dae-yeol] Hyundai Motor Group has become the third-largest automaker worldwide by sales volume in the first half of this year. Starting from around the 10th place in 1999, the year the group was founded, it steadily climbed the ranks to reach 5th place in 2010 and has now entered the global top 3 after 12 years. This achievement was made in less than two years since Chung Eui-sun took office as chairman of Hyundai Motor Group in 2020.

According to investor relations (IR) materials from various automaker groups on the 17th, Hyundai Motor Group sold 3.299 million vehicles worldwide from January to June this year. Japan’s Toyota Group ranked first with 5.138 million units, followed by Germany’s Volkswagen Group with 4.006 million units, making Hyundai Motor Group the third largest.

Hyundai Motor Group surpassed makers that had previously been ahead, such as the Renault-Nissan-Mitsubishi Alliance (3.14 million units), a coalition of France’s Renault and Japan’s Nissan and Mitsubishi, and Stellantis Group (3.019 million units), formed by the merger of Fiat Chrysler and the Peugeot-Citro?n group. Hyundai Motor Group was 5th last year, selling 3.475 million units in the first half and 6.667 million units for the full year.

This is a remarkable change in the global automotive industry, where rankings rarely shift without major mergers and acquisitions (M&A) or natural disasters. Until 1999, when Honorary Chairman Chung Mong-koo began leading the company in earnest, Hyundai and Kia’s domestic and overseas sales were around 2 million units, ranking about 10th worldwide. In the 2000s, the group expanded its overseas production facilities one after another, overtaking the U.S. Ford in 2010 to reach 5th place.

Even as Europe-based makers have faltered this year due to parts supply issues, Hyundai Motor Group showed solid performance and jumped two places in the first half. With a backlog of domestic and international orders and relatively well-managed production disruptions, the industry expects that if the current pace is maintained in the second half, Hyundai Motor Group has a high chance of finishing the year in 3rd place.

In the automotive industry, competition in scale is important due to the unique manufacturing process involving tens of thousands of parts. The larger the production and sales volume, the lower the manufacturing cost per unit, which helps secure a superior market position. Especially during the automotive industry’s restructuring, considered the first major transformation in over 100 years, Hyundai Motor Group’s rise in rankings is expected to further strengthen Chairman Chung’s innovative leadership.

The automotive industry is experiencing intensified waves of electrification and autonomous driving. The focus has shifted from internal combustion engines and hardware, which had been dominant, to electric vehicles and software. Chairman Chung, before and after his appointment, has encouraged the development of dedicated electric vehicles, an area where the group had lagged, while continuously exploring markets and new regions that previously had little presence. He also emphasizes that the scope must extend beyond vehicle manufacturing to mobility, encompassing human movement and connectivity. Receiving a notable ‘midterm report card’ during the process of realizing this vision is expected to add momentum to these efforts.