SNE Research which provides global market research and
consulting to the rechargeable batteries industry ranked Hyundai as the top
sixth EV carmakers by sales in 2022. The Asian carmaker is ramping up its
production capabilities as it aims to become one of the world's top three
electric vehicle manufacturers by 2030.
The South Korean car manufacturer whose brands include
Hyundai, Kia and Genesis delivered 510,000 EV units last year, an increase of
40.9 per cent from 2021, according to SNE Research. First place went to China's
BYD, which delivered 1.87 million units, followed by Tesla with 1.31 million
units. Germany's Volkswagen and China's Geely took fourth and fifth places,
respectively.
CEO Jaehoon Chang told CNBC, "We are now developing two
more platforms and that will enable us to have 18 models by 2030. And we are
(aiming) to achieve 2 million EV sales around 2030."
The carmaker is investing heavily in research and
development, building new plants and platforms as well as expanding EV lines
and production capacity.
Its EVs are currently developed on an advanced bespoke EV
platform, the Hyundai Electric Global Modular Platform (E-GMP). The 2021 Ioniq
5 crossover SUV was the first model in Hyundai's EV-focused sub-brand Ioniq to
be developed on the E-GMP. Hyundai subsequently launched the Ioniq 6 sedan
model in 2022. An EV platform scales the production of future models and
reduces development and manufacturing costs.
Hyundai plans to introduce vehicles in 2025 based on its two
new EV platforms, eM and eS, which are expected to lead to more efficient
vehicle development and greater cost reductions.
Away from the limelight, Hyundai has gradually slipped into
third place in 2022 in the global race to become the largest global automaker.
Based on industry data compiled by CNBC, Hyundai and Kia sold a total of 6.85
million vehicles globally last year, up 2.7 per cent from a year ago. Top dog
Toyota sold nearly 10.5 million units while European auto giant, Volkswagen
sold about 8.26 million units.
Hyundai reported a 92 per cent year-on-year increase in net
profit for the first quarter of 2023, "mainly driven by the US and
Europe," said Chang.
Hyundai reported a net profit of 3.42 trillion won (USD 2.56
billion), up from 1.78 trillion won in the same period a year ago. Revenue grew
24.7 per cent year-on-year, from 30.3 trillion won to 37.78 trillion won.
Hyundai aspires to make an impact in China's automotive
market but the company's exposure is very limited at the moment.
"We have a joint venture in China. We are now on a deep
dive into how we can regain the competitiveness of the China market," said
CEO Chang. China's EV sales are expected to hit more than 8 million units in
2023, according to Counterpoint Research.
"I think the first step that we're looking at is how we
can optimise the operational capacity in China. And the next step should be our
focus on the product portfolio, which should be attractive to local customers
with the comparable software functions, as well as hardware and design
features," said Chang in the CNBC interview.
In 2022, China produced almost two-thirds of all global
battery EVs and one in four cars sold in China is an EV. In China, more than 94
brands together offer over 300 models selling for just USD 5,000 to over USD
90,000. Local brands command 81 per cent of the EV market, among which BYD,
Wuling, Chery, Changan and GAC are a few of the top players.
In a distant second place is Europe followed more closely by
North America, accounting for 17 per cent and 11 per cent of global EVs built
in 2022, respectively.
For now, it looks like China has taken an insurmountable
lead in the race to be the leading EV manufacturer of electric vehicles. However,
it's early days yet with just nine per cent of all light vehicles made last
year an EV, there is plenty of room for the other markets to catch up.
Government support has a large part to play in the position
China is in today. Between 2009 and 2022, China handed out more than CNY300
billion (USD 43.5 billion) in purchasing subsidies and tax breaks to support
locally produced EVs, both domestic and foreign-owned brands. The government
also offered large procurement contracts to buy products from budding EV
companies, which helped them in their early years and fund further R&D.
In Tamil Nadu's Chennai, dubbed the Detroit of Asia, Hyundai
plans to increase capacity at its factory near Chennai to 850,000 vehicles per
year from approximately 775,000. In addition, the automaker's Indian
subsidiary, Hyundai Motor India, will establish a battery pack assembly unit
with an annual capacity of 178,000 units and install 100 EV charging stations
across the southern state in the next five years.
The investment plan follows the union government's recent
announcement that it will raise taxes on imported vehicles to encourage local
manufacturing.
In Singapore, Hyundai earlier this year said that its
Singapore assembly plant in Jurong will start rolling out the electric Ioniq 5
by the middle of this year following a delay partly due to the COVID-19
pandemic. It was originally slated to be completed last November.
Andy Kang, Hyundai Motor's head of sales innovation group
said that the plant will initially import the car's fully painted body shell
from its newly opened factory in Indonesia, with all other parts shipped in
from South Korea. It plans to gradually source parts locally once production
volume ramps up.
Besides the Ioniq 5, the newly unveiled Ioniq 6 and new Kona
Electric will be assembled in the Jurong facility too. The plant is slated to
produce up to 30,000 vehicles a year by 2025.
"We aim to become the number one EV brand in Singapore," Kang said. That position is currently held by Tesla.