Hyundai Motor Group New Year Event Held... New Hub for Electric Vehicle Exports
Leading Beyond Ulsan and Hwaseong... First Dedicated Line to Be Completed in Q1
The export value of electric vehicles (EVs) from Gwangmyeong City in Gyeonggi Province unexpectedly ranked first among basic local governments last month. Until now, Ulsan and Hwaseong in Gyeonggi, where Hyundai Motor and Kia have factories producing dedicated EVs, have been competing fiercely as the domestic 'EV hubs,' but Gwangmyeong has rapidly emerged as the top exporter. This area houses Kia's factory that manufactures the large sports utility vehicle (SUV) EV9, and Hyundai Motor Group Chairman Chung Euisun held the group's New Year event there earlier this year. Gwangmyeong is being evaluated as an emerging EV export base replacing Ulsan.
According to trade statistics by basic local governments from the Korea International Trade Association on the 22nd, Gwangmyeong's EV export value last month recorded $451 million. Ulsan followed with $434 million in exports, and Hwaseong, Gyeonggi, came third with $413 million.
On the 3rd, Chung Eui-sun, Chairman of Hyundai Motor Group, held a New Year's event at the Kia factory in Gwangmyeong, Gyeonggi Province. This is the first time Hyundai Motor Group has held a New Year's event at a production base. The Kia Gwangmyeong plant will operate an electric vehicle dedicated line in the first quarter of this year. [Photo by Hyundai Motor Group]
Until the first half of last year, Gwangmyeong had no EV export volume at all. The EV9, produced at Kia's Gwangmyeong plant, was first launched domestically in June last year, and only in the second half of the year did it gradually start being shipped for export. This plant was also the first to produce a dedicated EV, the EV9. Exports were mainly to North America and Europe. The company stated, "The unit price of the EV9 is higher than other EVs produced domestically, and exports have been strong, leading to increased sales."
Gwangmyeong's position as the top EV exporter is expected to continue for the time being. Kia's Gwangmyeong plant will be the first among Hyundai Motor Group's domestic factories to have a dedicated EV production line. Final construction is underway, aiming for completion in the first quarter of this year. Although work has begun to build new dedicated EV factories at Kia's Hwaseong plant and Hyundai's Ulsan plant, actual operation is expected to start after next year.
While the dedicated EV factories in Ulsan and Hwaseong are newly built, the Gwangmyeong plant is a converted existing internal combustion engine vehicle production line. Chairman Chung Euisun said at the New Year's event held at the Gwangmyeong plant on the 3rd, "I consider it meaningful to start the new year with employees at Gwangmyeong plant, the group's first dedicated EV factory."
An employee is assembling the dedicated electric vehicle EV9 at Kia's Gwangmyeong plant. [Photo by Hyundai Motor Group]
Until now, Ulsan, where Hyundai Motor's factories are concentrated, and Hwaseong, which has been responsible for Kia's domestic EV production, have been regarded as the 'two-horse chariots' of the domestic EV export bases. Hyundai Motor's Ulsan plant produces the Ioniq 5, Kona Electric, and Genesis EVs. Kia's Hwaseong plant manufactures the EV6 (including GT) and Niro EVs.
On an annual basis, Ulsan and Hwaseong, which have consistently exported throughout the year, have higher export volumes than Gwangmyeong. Hwaseong's EV export value was $5.8 billion, surpassing Ulsan for the first time in 2021 to become the top exporter, and it reclaimed the top spot last year after two years. Ulsan exported about $4.9 billion last year. The third-largest EV exporting region on an annual basis is Pyeongtaek, Gyeonggi, which has a KG Mobility factory. Gwangmyeong follows next.
Although new car demand has slowed due to economic contraction in Gyeonggi, EV demand continues to steadily increase. Hyundai Motor Group expects global vehicle sales this year to grow about 1.6% compared to last year, with EVs (including PHEVs) expected to increase by approximately 24.6%. As the global EV market moves past the introduction phase and enters the early stage of popularization, competition among major countries and automakers to seize leadership is expected to intensify. In this situation, domestic automakers are continuously increasing EV production at each factory, raising interest in what results this will lead to throughout the year.
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