Hyundai Motor is aiming for a rebound in the Chinese market. Although its market share has fallen to the 1% range after being overtaken by homegrown Chinese electric-vehicle companies, it plans to double down on localization by launching its first China-only EV, the Elecseo.
José Muñoz, Hyundai Motor president, said at the CEO Investor Day held in Manhattan, New York, on the 18th (local time), "We have struggled in recent years, but China is a land of opportunity for us, and we have established a stronger strategy for the Chinese market." He noted, "With sufficient courage and determination, we will leverage local technology, expense, and partners, and we will also launch products tailored to the local market."
Hyundai Motor, which entered the Chinese market in 2002, grew rapidly, with sales in China surpassing 1 million units in 2013. At the time, it was considered the third-largest foreign auto corporations after Volkswagen and General Motors (GM). In 2016, sales reached a record high of 1.14 million units.
However, after the deployment of THAAD (Terminal High Altitude Area Defense) in 2017, China's economic retaliation began, and as homegrown Chinese EV makers surged, last year's sales stayed at around 150,000 units. As market share fell to the 1% range, rumors of withdrawal also surfaced.
Recently, Hyundai Motor has staked its all on boosting its share in China by leading with new models. Following the launch last month of the Palisade hybrid, a large sports utility vehicle (SUV), the company will begin preorders as early as this month for the Elecseo, its first China-focused electric SUV.
The Elecseo is already taking consultation reservations through the official website. Unlike the Palisade, which is made in Korea and exported, the Elecseo is produced in China. As Hyundai Motor has unveiled a plan to launch six China-only EVs by 2027, the Elecseo is expected to be the first step that determines the recovery of its share in China. Locally, there is speculation that the Elecseo will be released between 100,000 and 150,000 yuan (about 20 million to 30 million won).
Hyundai Motor has also launched a discount offensive. China's auto industry has been locked in fierce price competition since 2023, and Hyundai Motor had taken a cautious stance, saying "quality comes first." However, starting this year, in February it cut the price of the Tucson L SUV by 40,000 yuan (about 8 million won) from the previous level to 129,800 yuan (about 25 million won), and from June it reduced it further to 119,800 yuan (about 23 million won).
Sales are also gradually recovering. In August, Hyundai Motor sold 14,971 units in China, up 15% from the same period a year earlier. In June, sales rose 66% month over month to 21,713 units. Cumulative sales from January through August reached 132,748 units, and full-year sales are expected to easily surpass last year's level.
Still, some say it will take time for Hyundai Motor to regain its presence in China. 36kr, a Chinese tech media outlet, analyzed, "Hyundai Motor is showing its intent to enter China's new energy vehicle (EVs, hydrogen vehicles, and hybrids) market, but amid fierce competition and the constant rollout of new models in China, it is unclear whether it can expand its influence."