China is the world’s largest auto market, with about 25 million new vehicles sold a year, and Hyundai Motor Group is trying to regain ground there. The company is now leaning on its IONIQ electric-vehicle brand, after past missteps in reading China’s fast-changing demand.
Industry officials said China’s shift to electrification is moving quickly, with electric vehicles accounting for about 50% of new-car sales. Hyundai, citing that trend, decided to deploy IONIQ models designed to match Chinese consumer preferences.
Two China-focused concept vehicles unveiled earlier this year in Beijing — the “Venus Concept” and “Earth Concept” — highlight the approach. They feature a gold color favored by Chinese buyers, a futuristic design and an SUV-oriented lineup.
A Hyundai official said the vehicles were planned “from the beginning” to reflect Chinese lifestyles and that the company introduced a new naming system, different from existing IONIQ conventions, using “planets” as the motif.
Hyundai also outlined a China-centered technology roadmap. It is working with Chinese company Momenta to develop locally optimized autonomous-driving technology. It also plans to introduce its first EREV (extended-range electric vehicle) technology in China, taking into account charging infrastructure and long-distance driving conditions. Li Fenggang, general manager of Beijing Hyundai, said the company will complete mass-produced products that “perfectly combine” smart driving favored by Chinese customers with in-cabin UX experiences.
Hyundai has previously faced setbacks in localization. As China’s auto market grew under the lead of foreign brands from Germany, Japan and South Korea, Hyundai gained popularity with a “good value” positioning. But it expanded its sedan lineup as demand for SUVs surged and failed to keep pace with Chinese government policies aimed at expanding the EV market. Meanwhile, the competitiveness of Chinese local brands strengthened to the point of challenging Hyundai.
Experts said Hyundai needs a multi-layered strategy that reflects structural changes in China’s mobility market. Kim Junseong, an analyst at Meritz Securities, said the old approach of offering China-tailored EVs at low prices is no longer enough, and urged Hyundai to accelerate the launch of autonomous-driving smart cars that can win support from both the government and the market, whether developed independently or through partnerships.
Kim Dongyoung, a senior research fellow at the Korea Development Institute, said Hyundai should not view China simply as a market to restore sales, but as a test bed to secure leadership in future mobility. He called for a broader playbook, including working with local companies to learn autonomous-driving technology and improving access to China’s parts suppliers and software ecosystem.
Experts said Hyundai needs a multi-layered strategy that reflects structural changes in China’s mobility market. Kim Junseong, an analyst at Meritz Securities, said the old approach of offering China-tailored EVs at low prices is no longer enough, and urged Hyundai to accelerate the launch of autonomous-driving smart cars that can win support from both the government and the market, whether developed independently or through partnerships.
Kim Dongyoung, a senior research fellow at the Korea Development Institute, said Hyundai should not view China simply as a market to restore sales, but as a test bed to secure leadership in future mobility. He called for a broader playbook, including working with local companies to learn autonomous-driving technology and improving access to China’s parts suppliers and software ecosystem.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.