Euisun Chung, chairman of Hyundai Motor Group, continues his extensive site visits, following his recent trip to Brazil with a visit to the Turkey plant, a key production base in Europe. The Turkey facility is set to begin production of the Ioniq 3, a crucial model targeting the European small electric vehicle market in the second half of this year. This visit aims to strengthen the group's long-term growth strategy through discussions on local production and sales strategies.
According to industry sources, Chung toured the Ioniq 3 production line at Hyundai's Turkey plant in Izmit, near Istanbul, on July 30 (local time), where he discussed local production and sales strategies with employees.
Chung's visit to Turkey to inspect the Ioniq 3 underscores the model's significance as a strategic vehicle aimed at solidifying Hyundai's electric vehicle lineup in Europe and generating new demand.
The Ioniq 3 is Hyundai's first B-segment electric vehicle introduced in Europe, with production set to begin in mid-August at the Turkey plant, followed by a phased rollout in Europe. Hyundai aims to position the Ioniq 3 among the top competitors in the B-segment electric vehicle market.
The Turkey plant's foray into electric vehicle production is significant, as it has primarily manufactured small cars like the i10 and i20. Starting with the Ioniq 3, the plant plans to expand its electric vehicle production. To prepare for the Ioniq 3's production, a dedicated production line was established last year, and trial production commenced in May.
Chung closely examined the production process from body manufacturing to assembly and emphasized the importance of thorough quality checks. He stated, "From the initial stages of production, quality must be prioritized to exceed customer expectations and enhance market competitiveness. In particular, we must ensure that our vehicles are recognized as the safest in Europe."
Chung also visited the Hyundai Mobis Battery System Assembly (BSA) plant to closely monitor the production process of the battery system that will be used in the Ioniq 3.
The Ioniq 3 is the latest model in Hyundai's dedicated electric vehicle brand, the Ioniq lineup, designed as a hatchback that considers European driving conditions and lifestyles. With previous models like the Ioniq 5 and Ioniq 6, Hyundai aims to actively target the demand-rich B-segment market with the Ioniq 3.
The B-segment accounts for 15% of total demand in Europe and is expected to maintain stable demand in the future. Currently, electric vehicles make up 14% of the B-segment market, projected to rise to 33% by 2030 and 65% by 2035. Consequently, major European competitors like Volkswagen are actively expanding their B-segment electric vehicle offerings. Hyundai plans to launch the Ioniq 3 in the local market in the second half of this year, with a target of selling over 40,000 units annually next year.
Meanwhile, the Turkey plant, established in 1997 to penetrate the European market, is Hyundai's oldest overseas production base and will celebrate its 30th anniversary next year. The plant has steadily expanded its scale in line with European growth, increasing its annual production capacity to 100,000 units in 2007 and 200,000 units in 2013.
The range of vehicles produced has also evolved in response to market conditions and customer demand. Starting with the Accent, the plant has produced various European strategic models, including the Grace, Starex, Matrix, i10, and currently the i20 and Bayon, achieving a cumulative production of approximately 3.4 million units. Last year, sales in Turkey increased by 6.7% year-on-year to 67,120 units, while the first half of this year saw a 2.3% increase compared to the same period last year, reaching 31,630 units.
Chung urged employees, "Based on the achievements of the past 30 years, we must adapt our working methods to the changes of a new era to continue growing. We need to pursue continuous innovation and strengthen our competitiveness to become the best company in Turkey across all areas of production, quality, and sales."
* This article has been translated by AI.
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