Toyota Motor Corporation, the global sales champion, just concluded its debate with foreign investor shareholders over its strategic viewpoint on electric vehicle (EV) development at its shareholders' meeting in June, and the company is preparing to make a full-scale effort to boost EV sales, which are lagging far behind the market, after the company's organizational reforms under President Koji Sato, which separated the battery EV and hydrogen fuel cell EV divisions. Meanwhile, Herbert Diess, the former CEO of Volkswagen Group, the world's second-largest automaker, warned the Supervisory Board in the fall of 2021 that Volkswagen might have to lay off 30,000 employees to reduce costs if its EV transformation was too slow. His warning sparked a furor and led to a breakdown in his relationship with the board. On July 22, 2022, the group's Supervisory Board met and announced that Diess would leave his post at the end of August 2022. Oliver Blume, the CEO of Porsche who assumed the post in September 2022, outlined a 10-point plan to refocus the group's priorities. Volkswagen Group ranked third in EV sales in 2022, behind Tesla and BYD. Although former CEO Herbert Diess was hesitant to lay out a clear strategy for EVs, Volkswagen Group remained third in global EV sales in the first half of 2023. However, the gap between Volkswagen Group and Tesla and BYD widened, while the gap between Volkswagen Group and SAIC-GM-Wuling Automobile, ranking fourth, narrowed to less than 3,000 units. Hyundai Motor Group ranked third and sixth in global sales and global EV sales, respectively, in 2022 and rose to fifth place in global EV sales in the first half of 2023. Its self-designed IONIQ 5 and IONIQ 6 won the World Car of the Year (WCOTY) title for two consecutive years in 2022 and 2023. Despite the lack of battery components, the IONIQ 5 and IONIQ 6 sold more than 100,000 vehicles in 2022, helping the group to rank sixth in global EV sales. Hyundai also launched the RN22e, a redesigned version of the IONIQ 6 for motorsports, under the Hyundai Motor N Line brand, which specializes in performance cars. Hyundai rolled out the NEXO FCEV, a hydrogen fuel cell vehicle, in 2018. This model cost 68.9 million won (about NT$1.88 million) when it was officially launched in South Korea, but it was priced at only 33.9 million won (about NT$928,000) after subsidies were included. With the full support of the Hydrogen Economy Roadmap, which was officially released by the Korean government on January 17, 2019, the NEXO FCEV is rapidly increasing its sales in the Korean market. By 2022, the NEXO FCEV had a global annual sales volume of 11,167 units, surpassing the 3,683 units of the facelifted Toyota Mirai and the 205 units of the Honda Clarity (FCEV). Hyundai aims to increase the annual sales of FCEVs to 110,000 units by 2025, and to establish a production system for 500,000 FCEVs per annum by 2030. This shows that Hyundai Group is striking out on all fronts in the field of zero-carbon emission EVs.
The key to Hyundai Motor Group's ability to compete in the EV market lies in Euisun Chung, the only son of former head Mongkoo Chung. Euisun Chung was appointed chairman of Hyundai Motor in March 2020 (Forbes, official website), and he was inaugurated as Executive Chair of Hyundai Motor Group in October 2020 (Hyundai, official website). After taking the reins, he made a drastic change in the group's management team in 2021, replacing one-third of the top positions with young talents in their 40s, including designer SangYup Lee, who was promoted to the position of Executive Vice President of Design. The Financial Times analyzed the big management change as a reflection of Euisun Chung's focus on transforming Hyundai from a fossil fuel engine company to a new energy leader. He has invested heavily in research and development of electric, hydrogen, and autonomous vehicle technologies as the world strives to become carbon-neutral. We have seen Hyundai Motor Group reap the rewards of this change in the marketplace. The World Car Awards jury named SangYup Lee as the 2023 World Car Person of the Year for his significant contribution to the design of stunning and innovative concept and production vehicles, including the IONIQ 6, the overhauled second generation KONA EV, and the N Vision 74. Hyundai has not only earned market recognition for its impressive sales volume but has also pioneered a new trend in automobile design that sets global standards. Breaking away from the outdated stereotype of Korean cars as mere plagiarizers or inexpensive vehicles, Hyundai has emerged as a trailblazer that consistently delivers innovative and high-quality automotive experiences. Hak Soo Ha, the Vice President of Design who relocated from Korea to the U.S. to oversee design work, was interviewed alongside Don Romano, President and CEO of Hyundai Motor Canada. Their joint interview followed Hyundai's receipt of the Canadian Car of the Year awards, as voted by the Automobile Journalists Association of Canada. The accolade was bestowed upon the IONIQ 5, which emerged as the 2023 Canadian Utility Vehicle of the Year. In this post-award interview, Hak Soo Ha expressed his belief that the future of automotive design transcends mere conformity to expectations. Instead, he envisions a fresh mindset—one that embraces innovation and uniqueness. His strategic approach, aptly named the King of the Chess Piece, aims to create vehicle models that leave a lasting impression, offering something truly special to drivers and enthusiasts alike. The IONIQ 5 and IONIQ 6 were conceived with this innovative mindset, embodying a distinctive style that has garnered widespread popularity and earned deep respect. The RN22e Concept, an electric high-performance model in which Hak Soo Ha played a pivotal role, delivers track-level performance by meticulously refining and optimizing the streamlined body design of the IONIQ 6—a vehicle built on Hyundai's cutting-edge E-GMP platform. Aligned with the ethos of the N Brand (Hyundai's performance car division), which was established by Albert Biermann (a prominent figure from BMW M GmbH who joined Hyundai in 2014), the RN22e endeavors to do more than merely transport its owner from point A to B. It seeks to ensure that every drive is an exhilarating experience, leaving no room for boredom. This commitment to driving pleasure traces back to the N Brand's inception in 2017, with the launch of the iconic i30 N at the forefront of this exciting journey. Even in the future of electric cars, the N Brand will remain committed to embodying its three core pillars across its brand models:
- Corner Rascal: This pillar emphasizes tight, perfectly balanced steering.
- Race Track Capability: All N model cars are purpose-built to excel directly on the race track.
- Everyday Sports Car: Beyond performance, the N Brand ensures that its cars cater to everyday usability. They satisfy the needs of all users on the road, not just during highway cruising but also in daily city driving.
With such confident design leadership, we eagerly anticipate Hyundai Motor Group's new creations that will set the trend for the electric car era. The recently launched fifth generation Santa Fe, unveiled in August, stands as compelling evidence of this commitment. Its bold and upright lines exude stability and intrepidity, reinforcing the N Brand's vision for exceptional automotive design.
Turning our attention to Kia, another brand under the Hyundai Group umbrella, we find equally impressive energy and ambition. In 2022, Hyundai Group secured the third spot in global rankings, with a remarkable 6.85 million units sold, and Kia accounted for 2.9 million units, contributing significantly to the overall share. Despite the primary demand for mass-market cars like Hyundai, Kia manages to carve out its own unique and flavorful style. Even under shared chassis and powertrain components, Kia stands out. This is evident from the successful launch of the EV6 two years ago and the recent introduction of the EV9 electric car this year. Notably, the EV6 achieved global sales exceeding 80,000 units in 2022. Kia achieved record sales of 1.575 million units in the first half of this year (compared to Hyundai's 2.081 million units in the same period). Kia has also managed to differentiate itself from Hyundai's brand models within a similar price range while complementing each other. The Kia EV6 GT (all-electric sporty crossover) was crowned the 2023 World Performance Car of the Year, coinciding with the Hyundai IONIQ 6 receiving the prestigious World Car of the Year title. This dual victory positions Hyundai Motor Group as a formidable force across global markets (except in China, where historical tensions stemming from South Korea's deployment of the THAAD anti-ballistic missile system in 2016 remain a factor). Perhaps this explains why Samsung Securities boldly predicted in April that Hyundai Motor Group would surpass Toyota and Volkswagen to claim the world's top sales position by 2026, with an impressive 9.2 million units sold. As for the actual situation, readers can witness its unfolding.
Notes
1. In February 2022, Kia partnered with Jiangsu Yueda Group to establish Yueda Kia Company, replacing the original Dongfeng Yueda Kia Motor (DYK Motor). Kia invested USD 900 million in Yancheng, Jiangsu, aiming to produce vehicles mainly for export (36,101 units exported by July 2023). Entering the Chinese market in 2023, Kia is targeting the new-energy vehicle sector. Whether this signals Hyundai Motor Group's resurgence in China after the closure of its two factories remains to be seen through future market performance.
2. In H1 2023, Toyota Group sold 4.209 million units, while Volkswagen Group sold 4.372 million units.
About the author - Kenny Liu
Graduated from Dept. of Aeronautics and Astronautics, Cheng Kung University in 1988, started his auto industry career since July 1990 after two year military service. Starting as a service engineer and a temp technician, product marketing specialist in Peugeot/ Daihatsu, marketing and dealer channel specialist in VW LCV from March 1992, then field manager in GM Taiwan from Feb. 1994, sales and service / parts head in Ford Lio-Ho from Sep. 1998 till retirement in May 2019. Kenny then started to work for JLR Taiwan as sales/service head and consultant/ lecturer. After that, he was invited to work at a Suzuki dealer of Taipei as the general manager until April 2022.