Its affiliate Kia said Wednesday that domestic sales of eco-friendly vehicles — including hybrids, electric vehicles and hydrogen-powered cars — jumped 51.9 percent on-year in March to 35,480 units.
Electric vehicle sales alone surged 122.5 percent to 14,488 units, marking the first time Kia’s monthly domestic EV sales topped the 10,000 mark.
Pricing has emerged as a key lever. With government subsidies, models such as the PV5 and EV3 are priced in the 20 million won ($13,216) range, allowing Kia to reach a broader pool of cost-conscious consumers.
Hybrid demand also remained solid, with sales rising 14.5 percent to 19,293 units, underscoring a transitional shift as consumers hedge between fuel efficiency and full electrification.
“Sales in the Middle East and sub-Saharan Africa dipped due to geopolitical risks, but robust eco-friendly vehicle demand elsewhere drove us to our best-ever first-quarter performance,” a Kia spokesperson said. “We will continue to build sales momentum by leading with EVs and hybrid SUVs.”
"The most viable escape from a world where geopolitical instability dictates energy prices is clean energy," said Kim Do-hyun, a senior analyst at Samsung Securities.
Beyond sales, Hyundai Motor Group is deepening its push into battery technology. The group has begun developing ultra-high-nickel batteries — with nickel content exceeding 90 percent — in partnership with cathode material suppliers L&F, POSCO Future M and Ecopro. The next-generation cells are designed to deliver a range of 500 to 700 kilometers on a single charge, about 10 percent more than current high-nickel batteries.
No battery maker or automaker has yet succeeded in mass-producing such cells, which demand advanced engineering to manage heightened fire risks and shorter lifespans tied to extreme energy density.
Industry sources say the batteries are expected to be fitted in Hyundai's premium EV lineup, including its N performance series and the Genesis Magma brand.
The group plans to continue development at its upcoming Future Mobility Battery Campus in Anseong, south of Seoul, scheduled for completion later this year. The facility will serve as a hub for battery research across EVs and robotics.
Hyundai has also signaled that even as it builds in-house battery capabilities, it will not reduce procurement from external cell makers such as SK On. Its solid-state battery technology — widely considered the next frontier for safer, higher-density energy storage — is reportedly on par with that of South Korea's three major battery manufacturers.
Meanwhile, the group is overhauling its flagship Ulsan complex — the world's largest single automotive plant, spanning 5 million square meters with an annual capacity of up to 1.52 million vehicles. Two aging production lines at Plant 1 and Plant 4, where Hyundai's first assembled car, the Cortina, rolled off the line in 1968 and its first indigenous model, the Pony, was built starting in 1975, are slated for reconstruction.
The green vehicle push coincides with the group's broader physical AI ambitions, which include deploying Boston Dynamics' Atlas humanoid robots at its U.S. plants by 2028 and mass-producing on-device AI chips for autonomous robotics. With electrification gaining ground at the showroom and intelligent automation reshaping the factory floor, Hyundai is betting both fronts will define its next chapter.
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