Chairman Jeong Encourages Czech Factory Employees During Chuseok Holiday
European New Car Demand Slows... Electric Vehicle Market Stagnates
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Chung Euisun, Chairman of Hyundai Motor Group, visited the Hyundai Motor plant in Nosovice, Czech Republic, on the 19th (local time) to review the status of the European business and encourage employees. Despite growing uncertainties such as a slowdown in demand growth for new cars including electric vehicles, he urged flexible preparation for the transition to electrification.
Chairman Chung said, "The Czech plant is a key hub for future investments in the vision and technology of eco-friendly mobility," adding, "Despite the uncertainties in the global market, it plays a very important role in Hyundai Motor Group's continuous success."
Martin Klitschnik, Head of Production at the Czech Plant (HMMC), Chung Eui-sun, Chairman of Hyundai Motor Group, and Lee Chang-gi, Head of HMMC, are inspecting the factory production line on the 19th (local time). [Photo by Hyundai Motor Group]
According to data from the European Automobile Manufacturers Association, local new car demand from January to July this year was recorded at 7.91 million units, showing only a 4% increase compared to the same period last year. The annual growth rate last year was 13%. Demand for electric vehicles from January to July this year was 1.09 million units, essentially stagnant with only a 1% increase compared to the same period last year.
The Czech plant visited by Chairman Chung is Hyundai Motor Group's only electric vehicle production base operating in Europe. It is important not only to respond to the recent changing market conditions but also to focus on mid- to long-term strategies. The company stated that Chairman Chung personally toured the local production line, which is accelerating the establishment of a smart manufacturing platform in preparation for the full-scale electrification era, and encouraged the executives and employees.
He said, "We will not spare investment and support for quality and safety," adding, "To maintain the excellent productivity and profitability of the Czech plant, securing quality, service, and talent is crucial." He continued, "Although we are facing difficulties due to recent upheavals in the electric vehicle market, our unwavering efforts for innovation and sustainable growth must be further strengthened."
Hyundai Motor Group Chairman Chung Euisun is having lunch with local employees working at Hyundai Motor's Czech plant and the European region, encouraging them. [Photo by Hyundai Motor Group]
Chairman Chung Eui-sun is encouraging and taking a commemorative photo with local employees working at Hyundai Motor's Czech plant and the European region. [Photo by Hyundai Motor Group]
In the short term, anticipating a slowdown in electric vehicle demand, the company decided to flexibly supply various eco-friendly vehicles and internal combustion engines. It expects competitive hybrid models such as the Hyundai SUV Tucson Hybrid to fill the gap in electric vehicle sales.
The new Kona electric vehicle produced at the Czech plant, the Ioniq 5 exported from Korea, and the Casper electric vehicle (local name: Instar) to be launched in the second half of the year are expected to play important roles. Kia plans to release an improved model of the EV6, a low-priced trim of the EV9, and launch the EV3 in Europe in the second half of this year. The EV3 will be introduced to overseas markets for the first time as a compact SUV. Special editions of hybrid or plug-in hybrid models will be released for each main model.
Lee Chang-gi, Head of Hyundai Motor Company's Czech Plant (HMMC), Chairman Chung Eui-sun, and Martin Klitznik, HMMC Production Director, are inspecting the production line. [Photo by Hyundai Motor Group]
In the mid- to long-term, the company has decided that transitioning to EVs is the right direction and is focusing on increasing local production. Kia plans to establish an electric vehicle production system at its Slovakia plant, aiming to start operations in the second half of next year. Kia also announced plans to enter the local commercial vehicle market with purpose-built vehicles (PBVs). Recently, it exhibited models such as the PV5 at IAA Transportation 2024 held in Hanover, Germany.
Hyundai Motor Europe Technical Center (HMETC) will strengthen its role as a hub for developing high-performance and eco-friendly mobility while enhancing research activities to improve the price competitiveness of overseas-produced models. It will also expand research and development functions to enter the local PBV market.
Hyundai Motor Group Chairman Chung Euisun is talking with employees at the Hyundai Mobis Battery System (BSA) plant located within the Czech factory. [Photo by Hyundai Motor Group]
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