"From Budget Brand to Electric Vehicle Innovator"… The WSJ's Take on Hyundai's Secret

"Decision-making is very fast"

Hyundai Motor Company and Kia are shedding the stigma of being low-cost brands in the U.S. market and emerging as electric vehicle innovation leaders, the Wall Street Journal (WSJ) reported on the 22nd (local time).

In an article titled "How Hyundai Became Cool," WSJ evaluated, "South Korean automakers Hyundai Motor Company and Kia have long been known for making affordable cars, but in recent years, they have become one of the leaders in the electric vehicle sector among the automotive industry and consumers."

Recently, Hyundai and Kia's electric vehicles have been highly regarded in the U.S. market. Following their ranking as the world's third-largest seller last year with 6.85 million units sold, they also ranked third in electric vehicle sales in the U.S. Hyundai's electric vehicle Ioniq 6 was selected as the "Car of the Year" at the New York Auto Show last April amid critical acclaim.

In particular, the income level of Hyundai and Kia electric vehicle buyers is relatively high. According to S&P Global Mobility, an automotive market research firm, the largest income group among buyers of Hyundai's Ioniq 5 and Kia's EV6 last year earned over $250,000 annually (approximately 330 million KRW). This signifies a change in Hyundai's status, which previously operated as a "low-cost brand."

Competitors also acknowledge Hyundai and Kia's growing stature. Jim Farley, CEO of Ford, recently stated, "The companies I am most paying attention to are Hyundai, Kia, Chinese firms, and Tesla." Elon Musk, CEO of Tesla, also posted on social media last year that "Hyundai is doing quite well."

WSJ pointed to Chairman Chung Euisun as the driving force behind Hyundai and Kia's strong performance. One of the secrets, the article introduced, is the very fast decision-making and execution. Jose Munoz, Hyundai Motor Company President, who was recruited in 2019 when Chairman Chung was Vice Chairman, explained, "There is no debate. Once a decision is made, execution is very fast."