Hyundai Motor Group Drives to Become Global No. 2 in Sales, Targets China and Russia Markets.
Hyundai Motor Group Accelerates Push to Become Global No. 2 Automaker Hyundai Motor Group is driving its efforts to become the global No. 2 automaker. Despite the global automotive market contraction caused by the worldwide economic downturn, Hyundai and Kia have found a breakthrough with their localization strategies. Notably, they are narrowing the gap with the struggling Volkswagen Group, the current No. 2, and are rapidly catching up. According to industry sources on the 12th, Hyundai is focusing on the recovery of sales in the Chinese and Russian markets. In China, the world’s largest automotive market, Hyundai is preparing to re-enter the market with new electric vehicles. In Russia, the company is preparing to re-enter by reacquiring its factory and registering trademarks. China and Russia are key regions for Hyundai Group to expand its sales. Hyundai and Kia reached their peak in 2016, selling 1.8 million vehicles in China. However, after the 2017 THAAD (Terminal High Altitude Area Defense) crisis, sales sharply dropped, and they only sold 204,573 units last year. Out of five plants in China, the Beijing Plant 1 (in 2021) and the Chongqing Plant (in 2024) were already sold, and the Changzhou Plant in Jiangsu Province, which began operations in 2016, is also in the process of being sold. In Russia, Hyundai sold about 400,000 units annually in 2021, ranking No. 1 in the market, but sales sharply declined following the Russia-Ukraine war, and Hyundai withdrew from the market. At the end of 2023, Hyundai sold its St. Petersburg plant for just 100 won. However, due to an option allowing repurchase within two years, the company is expected to make a decision on the matter by the end of the year. If Hyundai Group recovers its sales in China and Russia, surpassing Volkswagen Group’s sales is only a matter of time. Hyundai and Kia sold a total of 7.231 million vehicles globally last year, while Volkswagen Group sold 9.027 million vehicles, a gap of about 1.8 million units. Notably, looking at the global sales declines of both companies, Hyundai and Kia saw a decrease of about 1% year-on-year, while Volkswagen Group's sales dropped by 2.3%. Hyundai and Kia are intensifying their localization strategies to capture the Chinese and Russian markets. Hyundai and Beijing Hyundai Unveil Electric SUV 'Elexio' at 2025 Beijing International Motor Show Hyundai Motor and its joint venture with Beijing Automotive, Beijing Hyundai, recently unveiled the electric SUV 'Elexio' at the 2025 Beijing International Motor Show. The vehicle is a mid-size SUV electric car that was developed in-house by Beijing Hyundai to cater to the local Chinese market. Although the Elexio is based on an internal combustion engine platform, it incorporates design features, infotainment functions, and advanced driver assistance systems (ADAS) tailored to Chinese consumer preferences. Beijing Hyundai plans to introduce a total of six electric vehicles in the Chinese market by 2027, starting with the Elexio. With discussions about the end of the Russia-Ukraine war, Hyundai and Kia are focusing on re-entering the Russian market. The Russian government has significantly raised the recycling fee (effectively a tariff) on imported vehicles, which could harm Chinese manufacturers that focus on export sales without local factories. If Hyundai re-acquires its local factory, it would be in an advantageous position. An industry insider commented, "As the North American market remains uncertain due to tariffs, the Chinese and Russian markets are critical regions for Hyundai Group to expand its global market share." Lee Seo-hyun, Senior Researcher at the Korea Automotive Technology Institute, stated, "The Russian market will rely more on a localization strategy suited to high-cost, high-regulation environments and on building trust in quality rather than short-term profits. Given the high uncertainty, only global manufacturers like Hyundai Group can devise proper re-entry strategies." ChatGPT를 사용하여 번역한 기사입니다.
