They plan to launch two new assembly lines for EVs only.
Hyundai is already in talks with major battery suppliers.
They want to go after Tesla.
The Hyundai Motor Group will boost its EV capacities and increase its investment in the technology. Tesla’s unexpectedly quick dominance in South Korea has prompted Hyundai to react.
Hyundai is no stranger to EVs as it builds and sells numerous models throughout its brands. Given its strong home market presence, it never thought Tesla would actually outsell the Korean brand in its own backyard, and yet this is what happened in June.
Hyundai now plans to build two new production lines entirely dedicated to assembling EVs. The first will be built next year while the second would be constructed in 2024. At the same time, Hyundai Motor has also held meetings with Samsung, LG, and SK Group, which make batteries and electronic parts, the goal being to secure batteries. These are the same companies that supply Tesla, Volkswagen and GM.
Only recently has Hyundai been concerned with Tesla’s growing market share. A senior Hyundai insider told Automotive News Europe that the introduction of the Model 3 was nothing short of a strategic victory for Tesla. As well, the insider said that Hyundai, like many traditional automakers, may face serious roadblocks from its powerful union. Not only do EVs require fewer parts but many are outsourced, which could lead to job cuts.
Hyundai has backed fuel-cell technology for a number of years however the technology is going nowhere. Globally, in 2019, nearly 1.7 million EVs were sold compared to just over 7,700 hydrogen vehicles. Hyundai has caught on as they only plan to launch only two hydrogen vehicles by 2025 while 23 EVs are on the way over the same period.