Hyundai Motor Group Chairman Chung Eui-sun marked the 5th anniversary of his inauguration on the 14th. Despite multiple variables and headwinds such as the coronavirus pandemic, high U.S. tariff rates, and the rise of China's auto industry, Hyundai Motor Group is widely seen as having grown into a global "top three" complete carmaker under Chung's leadership.
Chung took office as chairman of Hyundai Motor Group on Oct. 14, 2020, succeeding his father, Honorary Chairman Chung Mong-koo. It came 2 years and 1 month after he became the group's executive vice chairman in September 2018.
Hyundai Motor Group, which ranked fifth in global complete car sales in 2019, sold a total of about 7.23 million vehicles in the world market last year, maintaining the "big three" structure with Japan's Toyota and Germany's Volkswagen that has continued since 2022.
The combined revenue of Hyundai Motor and Kia rose from 163.8924 trillion won in 2019 to 282.68 trillion won last year. Over the same period, combined operating profit surged 380%, from 5.6152 trillion won to 26.9067 trillion won. Since 2022, they have posted record-high annual revenue and operating profit for three consecutive years.
Hyundai Motor and Kia posted a combined operating profit of 13.0086 trillion won in the first half of this year, when multiple headwinds emerged, including the U.S. Donald Trump administration's tariff policy, rising to No. 2 globally for the first time on a half-year basis. Their operating margin was 8.7%, more than double that of rivals including Volkswagen (4.2%).
Since Chung took office, Hyundai Motor Group over the past five years has also been credited with rising to the global top tier through a systematic and swift electrification strategy, strengthening its hybrid lineup to address the electric-vehicle chasm (temporary demand slowdown), and expanding sales of high value-added models.
In the global market, Hyundai Motor and Kia surpassed a cumulative 2 million electric vehicles sold in the first half. Hybrid sales also exceeded 600,000 for the first time on a half-year basis.
High value-added models such as sport utility vehicles (SUVs) and the luxury brand Genesis also contributed to growth. Over the past five years, the average prices of recreational vehicles (RVs) that Hyundai Motor and Kia sold overseas rose 114% from 34.59 million won to 73.87 million won, and 58% from 40.45 million won to 63.83 million won, respectively.
Genesis, which Chung led through every step before its launch, has been recognized for quality and design competitiveness. Global sales of Genesis models jumped from 77,135 units in 2019 to 229,532 last year.
Chung also took the lead in pushing vehicle electrification, which has become the mainstream of the global auto industry. In a 2018 message to employees, he said, "In the era of internal combustion engine vehicles, we were a 'fast follower,' but in the electric-vehicle era, everyone stands at the same starting line," adding, "We must become a first mover that leads the EV market with performance and value that surpass competitors."
Under Chung's leadership, Hyundai Motor Group developed E-GMP, a dedicated platform for electric vehicles. Models based on E-GMP, including the Ioniq 5, Ioniq 6, and EV9, have been successively named World Car of the Year.
Hyundai Motor Group's eco-friendly vehicle sales last year reached about 1.41 million units, roughly four times the level five years earlier. The share of eco-friendly vehicles in total sales also grew to 19.4%. In the first half of this year, it ranked seventh in global electric-vehicle deliveries (including plug-in hybrids). Excluding Chinese brands, which have high domestic brand sales shares, that places it third after Volkswagen and Tesla.
Chung has recently devoted full effort to investments in new businesses such as humanoid robots, hydrogen vehicles, and AAM (advanced air mobility).
Hyundai Motor Group established Robotics Lab, a dedicated robotics research unit, in 2018 and acquired U.S. robot developer Boston Dynamics in 2021. It also launched HTWO, the world's first hydrogen brand and business platform. The group operates organizations including Motional, which is responsible for autonomous driving research in the United States, and Supernal, which leads its air mobility business.
U.S. automotive magazine MotorTrend said, "Chung is fulfilling a leadership role in electric vehicles and future mobility, armed with insight into where the world and the industry are heading and a passion to build a better world." U.K. automotive outlet Autocar also said, "Chung is the driving force behind Hyundai Motor Group's remarkable growth," adding, "Now other car corporations are chasing Hyundai Motor Group."