Hyundai Motor Aims to Regain Its Former Status in China... Will It Overcome Trump’s Retaliatory Tariffs?
Hyundai Motor Group is putting forward a strategy focused on 'localization' and 'eco-friendly vehicles' to target the world's largest automobile market, China. With heightened concerns over the U.S. market due to the Trump administration's 25% tariff, the group is ramping up efforts to target China, the world's second-largest car market. In particular, Hyundai is making large-scale investments to regain the reputation of the Chinese market, where it sold around 1.8 million units in 2016, and is expanding its brand competitiveness. According to industry sources on the 25th, Hyundai Motor is aiming for a turnaround in China by investing in research and development (R&D) and launching electric vehicles. With the risks of U.S. tariffs resurfacing, the company is actively targeting the Chinese market, where 25 million new cars are sold annually. Hyundai Motor has decided to invest a total of $1.096 billion in a joint venture with Beijing Automotive Group (BAIC), Beijing Hyundai, in December last year. Both Hyundai and BAIC will equally share the investment. With this funding, Beijing Hyundai plans to release more products tailored to Chinese consumers and expand its export volume. Specifically, Beijing Hyundai plans to launch its first dedicated electric vehicle model this year, and from 2026, it aims to introduce five new energy vehicles (NEVs), including hybrid electric vehicles (HEVs). Hyundai Motor Group is also strengthening its local research and development (R&D) capabilities. At the end of last year, the group established a new corporation in Shanghai, "Como China," which focuses on artificial intelligence (AI) business. The initial capital is 213 million yuan, approximately 42.2 billion KRW. Through Como China, Hyundai plans to enhance collaboration with the city of Shanghai on AI technology projects required for Software-Defined Vehicles (SDVs). Shanghai is actively building a smart transportation ecosystem through autonomous driving and SDVs, and has reportedly opened over 2,000 kilometers of roads for autonomous vehicles. Hyundai Motor has been expanding its presence in China to enhance its SDV competitiveness. In 2021, it established a digital research and development (R&D) center in Shanghai, and in October of last year, it opened the "Shanghai Advanced Technology Research and Development Center." Hyundai plans to launch an electric vehicle equipped with generative AI from the Chinese autonomous driving software company "Haomo" in the second half of this year. Hyundai Motor President José Muñoz stated, "The Chinese market presents a challenge for most automakers due to oversupply," and added, "We are conducting in-depth market analysis to identify opportunities for improving product mix, sales volume, and brand value." ChatGPT를 사용하여 번역한 기사입니다.
