Chairman Chung Eui-sun Meets Brazilian President Lula to Discuss Cooperation
Promoting Localization of Eco-friendly Technologies Including Electric Vehicles and Hydrogen Business
Hyundai Motor Group Chairman Chung Eui-sun met with Brazilian President Luiz In?cio Lula da Silva on the 22nd (local time) in Brazil and pledged to invest $1.1 billion (approximately 1.5 trillion KRW) by 2032 in the eco-friendly vehicle and technology sectors. Considering the growing demand for eco-friendly vehicles such as electric and hybrid cars in the local market, they agreed to take tailored measures.
Brazil is the largest economy in South America and hosts Hyundai Motor's Latin America regional headquarters. The Hyundai Motor Brazil plant near S?o Paulo is Hyundai Motor Group's only production base in Latin America. Chairman Chung expressed his intention to develop and commercialize future technologies in eco-friendly fields such as hydrogen, focusing on local subsidiaries and partners.
On the 22nd (local time), Chung Eui-sun, Chairman of Hyundai Motor Group (right in the photo), met with President Lula and Vice President Geraldo Alckmin of Brazil, holding a model of the 'N Vision 74' (high-performance hydrogen hybrid rolling lab) for a commemorative photo. [Photo by Brazilian Government]
Chairman Chung said, "We are well aware of the Brazilian government's efforts to research, develop, and apply eco-friendly energy sources," adding, "If there is a role for Hyundai Motor Group to contribute in the hydrogen and eco-friendly mobility sectors, we will actively participate."
In December last year, the Brazilian government announced an eco-friendly mobility innovation program that offers tax reductions and subsidies exceeding 5 trillion KRW to automobile companies investing in decarbonization. Since then, major companies such as General Motors and Volkswagen have announced investment plans one after another. Hyundai Motor has also been diversifying investments in future technology sectors, focusing on key markets including South Korea, and plans to continue doing so.
This investment is also interpreted as a move to maintain leadership in the eco-friendly mobility sector, including electrified vehicles, in emerging markets. Chairman Chung has emphasized that Hyundai should be a "leader, not a follower" in electrification. During the meeting with the president, he said, "We are pursuing a rapid electrification strategy encompassing electric and hydrogen vehicles to eliminate carbon emissions," adding, "Hydrogen energy is a key means to address climate change and an important resource complementing electrification."
In line with the increasing number of electric vehicles in the local new car sales market, Hyundai plans to introduce models such as the Hyundai Ioniq 5 and Kona Electric locally. The Kia EV5, a dedicated electric vehicle scheduled for mass production this year, will also be launched. It is Kia's third dedicated electric vehicle and is considered a relatively affordable, entry-level model. Electric vehicle sales in Brazil accounted for less than 1% until 2022 but have steadily increased to 2.9% of total vehicle sales last month.
Additionally, Hyundai plans to develop a hybrid FFV (Flexible-Fuel Vehicle) powertrain combining a motor with ethanol-methanol blended fuel engines, which are in high demand locally. Flexible-fuel vehicles hold a 70-80% market share in Brazil's new car sales, but hybrid and electric vehicles have been rapidly increasing recently.
In the hydrogen sector, Hyundai is considering launching commercial vehicles locally or supplying hydrogen fuel cell systems. The company established a dedicated hydrogen business team for the Latin American region in Brazil at the end of last year. Chairman Chung also introduced new business initiatives pursued by Hyundai Motor Group, including Advanced Air Mobility (AAM) and Small Modular Reactors (SMR), and requested to explore cooperation opportunities within Brazil.
Jose Munoz, Hyundai Motor Chief Operating Officer (left in the photo), Chairman Chung Euisun, and President Lula are discussing local business plans at the presidential office in Brasilia on the 22nd (local time). [Photo by Hyundai Motor Group]
Chairman Chung expressed gratitude to President Lula for the support from the local government during Hyundai's business operations in Brazil. The company is also engaged in various community contribution activities, such as operating a free dental care program for residents near the plant. President Lula stated that the government is improving conditions for foreign companies to invest and said, "Hyundai Motor, which invests in eco-friendly hydrogen and technology sectors, is an important company growing in Brazil."
Attending the meeting were President Lula, Brazilian Vice President and Minister of Industry, Trade and Services Geraldo Alckmin, and other local government officials. From Hyundai Motor, Chairman Chung, Chief Operating Officer (COO) and Head of the Americas Region Jos? Mu?oz, and Vice President and Chief Strategy Officer (CSO) Kim Heung-soo participated. After meeting President Lula, Chairman Chung traveled to S?o Paulo to meet with Carlos Gilberto Caliroti Junior, President of the University of S?o Paulo, to discuss joint research and talent development plans with local universities.
The University of S?o Paulo is conducting various eco-friendly projects such as hydrogen production using second-generation ethanol and carbon capture and storage technology utilizing bioenergy. Chairman Chung said, "We look forward to closely cooperating with the University of S?o Paulo, which has a high level of competitiveness in various eco-friendly fields, to lead the clean energy market in Brazil."
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