Euisun Chung, chairman of Hyundai Motor Group, continues his extensive site visits, following his recent trip to Brazil, by inspecting the company's Turkey plant, a key production base in Europe. The Turkey plant 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 visited the Hyundai Turkey plant located in Izmit, near Istanbul, on July 30 (local time) to review the Ioniq 3 production line and discuss 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 to be introduced in Europe, with production set to commence in mid-August at the Turkey plant, followed by a phased rollout in Europe during the second half of the year. Hyundai aims to position the Ioniq 3 among the top competitors in the B-segment electric vehicle market.
This marks a significant step for the Turkey plant, which has primarily produced small cars like the i10 and i20, as it embarks on electric vehicle production. The plant established a dedicated production line for the Ioniq 3 last year and began trial production in May.
Chung closely examined the production process from body manufacturing to assembly and emphasized the importance of rigorous quality checks. He stated, "From the outset 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 this fall, 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 site and will celebrate its 30th anniversary next year. The plant has steadily expanded its capacity to align with European growth, increasing its annual production to 100,000 units in 2007 and reaching a capacity of 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, totaling 31,630 units.
Chung urged employees to adapt their working methods to align with the changes of a new era, stating, "Based on the achievements of the past 30 years, we must continue to grow and strive to become the best company in Turkey across all areas of production, quality, and sales through continuous innovation and competitiveness."
* This article has been translated by AI.
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