China is the world’s largest auto market, with 25 million new vehicles sold each year, and Hyundai Motor Group is trying to regain ground there. Industry watchers say the company must avoid repeating earlier mistakes that hurt results, including missing the SUV buying boom and the shift to electric vehicles. Attention is now on whether its Ioniq push can succeed.
According to the industry on April 21, China’s transition to electrification is moving quickly, with EVs accounting for about 50% of new-vehicle sales. Hyundai, citing that trend, decided to deploy Ioniq, its EV-only brand, with models designed to match Chinese consumer preferences.
Two China-focused vehicles unveiled earlier this year in Beijing — the Venus Concept and the Earth Concept — highlight the approach. They feature gold coloring favored by Chinese buyers, a futuristic design and an SUV-oriented lineup.
A Hyundai official said the vehicles were planned from the outset to reflect Chinese consumers’ lifestyles and that the company also introduced a new naming system, distinct from existing Ioniq conventions, using “planets” as the motif.
Hyundai also presented a new technology roadmap for China. Working with local company Momenta, it plans to implement autonomous-driving technology optimized for local conditions. It also plans to introduce its first EREV technology — extended-range electric vehicles — tailored to charging infrastructure and long-distance driving conditions in China. 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 a painful history of failed localization in China. The market initially grew under foreign brands from Germany, Japan and South Korea, and Hyundai gained popularity with a strategy built around value for money. But as SUV demand surged, it expanded its sedan lineup instead, and it also failed to keep pace with Chinese government policies aimed at expanding the EV market. Meanwhile, Chinese local brands strengthened to the point of challenging Hyundai’s competitiveness.
Experts say Hyundai needs a multifaceted strategy that reflects structural changes in China’s mobility market. Kim Jun-seong, an analyst at Meritz Securities, said the old approach of offering China-tailored EVs at low prices is no longer enough. He said Hyundai should move as quickly as possible to launch autonomous-driving smart cars that can win support from both the government and the market, whether developed independently or through partnerships.
Kim Dong-young, 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 said the company needs a multidimensional tactic, including working with local firms to learn autonomous-driving technology and gaining access to Chinese parts suppliers and the software ecosystem — challenges difficult to pursue at home.
Experts say Hyundai needs a multifaceted strategy that reflects structural changes in China’s mobility market. Kim Jun-seong, an analyst at Meritz Securities, said the old approach of offering China-tailored EVs at low prices is no longer enough. He said Hyundai should move as quickly as possible to launch autonomous-driving smart cars that can win support from both the government and the market, whether developed independently or through partnerships.
Kim Dong-young, 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 said the company needs a multidimensional tactic, including working with local firms to learn autonomous-driving technology and gaining access to Chinese parts suppliers and the software ecosystem — challenges difficult to pursue at home.
* This article has been translated by AI.
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