At Auto China 2026 (Beijing Motor Show), José Muñoz, president of Hyundai Motor, who declared a renewed push into the Chinese market, said, "What I can say humbly yet confidently is that Hyundai Motor can survive in the Chinese market." The idea is to leverage the know-how gained by competing in global markets such as the United States and Europe to once again compete head-on in China with Chinese automakers. Hyundai Motor set a goal of reaching annual sales of 500,000 vehicles by 2030, including both China domestic sales and exports.
On the 24th (local time), in an interview with Korean reporters at the China International Exhibition Center Convention Center in Beijing, Muñoz said, "Annual sales of 500,000 vehicles is a reasonable number we can achieve," adding, "We can also gain an opportunity to reduce global-level risk through success in the Chinese market." He added, "We have been considering ways to build market competitiveness and enhance performance by partnering with BAIC," and said, "Hyundai Motor is a corporations that has succeeded in the global market. We will apply that know-how in China."
Hyundai Motor Group first entered China 24 years ago. In 2016, just before diplomatic relations between Korea and China deteriorated over the Terminal High Altitude Area Defense (THAAD) issue, Hyundai Motor sold about 1,142,000 vehicles and Kia sold 650,000 in China alone—about 1.8 million combined—ranking among the "top three" with Volkswagen and Toyota. The market share then was in the mid-10% range. But after business deteriorated and it failed to recover share for 10 years, Hyundai Motor Group's sales in China last year came to about 210,000.
Muñoz said, "Over the past 24 years, we achieved sales of 12 million vehicles in China. We became complacent when things were going well and grew overconfident," adding, "Hyundai Motor learned how to be humble in China and analyzed what works and what does not." He continued, "China changes fast, but (Hyundai Motor's) decision speed was slow. I believe Hyundai Motor changed a lot by deciding to reenter China at the right time," emphasizing, "This led to a new strategy."
The starting point of Hyundai Motor's survival strategy is the Ioniq V unveiled at this motor show. Through "localization," it features functions favored by Chinese consumers. The Ioniq V is equipped with advanced driver-assistance system (ADAS) technology from Chinese information technology (IT) company Momenta and a Level 2+ Autonomous Driving function usable on highways. As consumer expectations have risen with advances in China's Autonomous Driving technology, the company appears to have strategically chosen collaboration with a proven local companies rather than developing independently. The platform and battery were developed in partnership with BAIC and CATL, respectively.
Starting with the Ioniq V, Hyundai Motor will expand the lineup to the Ioniq E, a midsize sport utility vehicle (SUV), a multipurpose vehicle (MPV), and an extended-range electric vehicle (EREV). These vehicles will also adopt local Autonomous Driving technology. Heo Jae-ho, Hyundai Motor China chief technology officer (CTO), said, "We will enhance the Autonomous Driving performance of all models produced in China," adding, "The Ioniq brand will be advanced with Level 2++ capabilities."
Wu Zhoutao, co-president of Beijing Hyundai (equivalent to a board chair in Korea), said, "Chinese consumers demand electrification as a given and also intelligence (smart features)," adding, "In particular, China's younger generation is very interested in smart driving. We are preparing (new models) in this direction and will develop up to Level 3." The Ioniq V is scheduled to launch in China at the end of this year.
The launch of the Ioniq V coincides with a period when the Chinese government is scaling back electric vehicle support. Muñoz said, "It is important to secure fundamental competitiveness," adding, "Accepting challenges and advancing through them is also the philosophy of founder Chairman Chung Ju-yung." He added, "Depending on performance in the Chinese market, we will push to export the Ioniq V to the Asia-Pacific region, Australia, and Southeast Asia."