Hyundai Motor Group is ramping up its efforts to expand in the European market, leveraging its electric vehicles. As Chinese electric vehicles gain traction in Europe, Hyundai plans to enhance its market share by launching the well-received Ioniq and purpose-built vehicles (PBVs).
According to industry sources, Hyundai began selling the compact electric vehicle Ioniq 3 in Europe this month. Production of the Ioniq 3 commenced last month at the Izmit plant in Turkey, targeting European consumers with a B-segment electric vehicle featuring a hatchback design that is in high demand locally.
Europe has a relatively high demand for compact cars and hatchbacks, and the market is accelerating its transition to electrification. Hyundai Motor Group is solidifying its presence in Europe, the home of the automotive industry, by focusing on electric vehicles.
According to the European Automobile Manufacturers Association (ACEA), 2,133,364 battery electric vehicles (BEVs) were registered in Europe (EU, EFTA, and the UK) from January to August this year, marking a 38.8% increase compared to the same period last year. The share of BEVs in the overall new car market rose to 23.2%, while the combined market share of gasoline and diesel vehicles decreased from 35.8% last year to 27.8% this year.
Hyundai and Kia's combined sales during the same period totaled 686,252 units, a 1.9% decline from the previous year. However, electric vehicle sales rebounded, placing them fourth behind Volkswagen Group, Stellantis, and Renault Group. In the first half of this year, Hyundai and Kia's electric vehicle sales in Europe reached a record high of 131,032 units.
Hyundai Motor Group's market share in Europe stands at 7.5%, surpassing traditional automakers such as BMW Group (7.2%), Toyota Group (6.7%), and Mercedes-Benz (4.9%), as well as Chinese companies like Geely Group (3.1%), BYD (2.5%), Shanghai Automotive (SAIC, 2.5%), and Chery Automobile (2.3%).
However, Chinese competitors are intensifying their efforts. Chery Automobile sold 207,871 units in Europe from January to August this year, a staggering 279.7% increase from 54,742 units during the same period last year.
In response, the EU has imposed additional tariffs on Chinese electric vehicles that benefit from government subsidies and is promoting the Industrial Acceleration Act (IAA), which favors local production and procurement. This legislation aims to classify automobiles as a strategic industry and apply 'Made in EU' requirements for public procurement and support. Securing local production bases and supply chains has become a key competitive factor for automakers.
Hyundai operates production facilities in Nošovice, Czech Republic, and Izmit, Turkey, while Kia has a plant in Žilina, Slovakia. Recently, these facilities have been ramping up electric vehicle production to enhance localization. Hyundai is set to fully launch the Ioniq 3 in Europe and expand its lineup with high-performance electric vehicles. Kia plans to introduce the large PBV PV7 in Europe in the second half of next year, further broadening its reach in the electric commercial vehicle market.
The appeal of electric vehicles is being increasingly recognized in the region. Recently, Hyundai's Ioniq 6 N won the performance category at the '2027 German Car of the Year (GCOTY)' awards, while Kia's PV5 won in the compact category. Both models will compete for the overall German Car of the Year award after passing the final evaluation.
Moon Hak-hoon, a professor at Osan University’s Department of Future Electric Vehicles, stated, "To compete with Chinese cars in Europe, it is crucial to continuously offer a diverse range of electric vehicles across A, B, and C segments, not just price competitiveness. A lineup that can broadly absorb consumer demand is essential to gain an edge over Chinese competitors."
* This article has been translated by AI.
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