(April 24): Hyundai Motor Co is aiming to more than double China’s contribution to its global sales to about 9% by 2030, seeking to reverse years of decline amid intensifying competition from local manufacturers.
To reach that goal, South Korea’s top automaker will need to sell about 500,000 cars a year in China by the end of the decade, chief executive officer José Muñoz said in an interview with Bloomberg Television at the Beijing auto show on Friday. To win back buyers, it plans to launch 20 new models, including the China-specific Ioniq Venus and Earth concept cars unveiled at the show, which will go into production in the second half of this year.
China, which once accounted for almost one-fifth of Hyundai’s global sales volume, currently makes up about 4%. It remains “the most advanced market in the world” for electric vehicles, autonomous driving and software-defined vehicle technology, Muñoz said.
“It’s been tough here,” he said. “So what we have included as part of the tripling down in China is to get to about 9% of our global sales target.”
Hyundai Motor Co CEO José Muñoz said it will have to sell about 500,000 cars a year in China by the end of the decade to reach the goal of taking almost 9% of global sales.
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Hyundai shares closed 3.6% lower in Seoul.
To compete with local rivals, Hyundai is localising its products by partnering with Chinese firms, including ByteDance Co and Momenta on self-driving technology, while jointly developing new models with BAIC Group as part of their eight billion yuan (RM4.64 billion) joint venture.
The carmaker is also working with battery giant Contemporary Amperex Technology Co Ltd to ensure the high performance of its vehicles, including the upcoming Ioniq models, boasting ranges of more than 600km (373 miles).
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The innovations mastered in the hyper-competitive Chinese market can eventually be exported to other regions to help offset the impact of global trade barriers and rising costs, Muñoz said.
“If you want to be really competitive in the market where Chinese competitors are operating, you have to be competitive here,” Muñoz said. “Not only do we need very good technology, but we need to achieve this at an affordable cost.”
When asked about a potential IPO for the Boston Dynamics unit, Muñoz declined to speculate but highlighted the robot developer’s impact on the group’s overall valuation. Hyundai shares have rallied 73% this year after the unveiling of its latest Atlas humanoid model.
“This shows that we have really very strong foundations to continue to grow in the future,” he said.
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