Going hybrid: A Hyundai Inster sub-compact EV on display at the Tokyo Auto Salon in Chiba. Hyundai Motor Group intends to equip both small and large vehicles with hybrid engines. — Bloomberg
SEOUL: Hyundai Motor Group set a new record in exports of eco-friendly vehicles last year, bolstered by robust sales of hybrid models, the South Korean auto giant has announced.
The group said that a total of 707,853 eco-friendly vehicles, including battery-powered electric vehicles (EVs) and hybrids, were exported last year, a 3% growth from a year ago.
Compared to 2020, the export volume of eco-friendly vehicles has grown by 160%, and their portion has also doubled to reach 32.5% of the group’s total exports.
The record-high figure comes as hybrid exports surged 44.6% to 397,200 units, making up 56.1% of the total eco-friendly export volume.
Among the exports, Hyundai’s Tucson hybrid topped the list with 93,547 units, followed by the Kona hybrid with 70,353 units and the Kia Niro hybrid with 69,545 units.
“Hyundai and Kia have achieved strong results two years in a row, with eco-friendly car exports hitting a record high, despite a challenging business environment both in South Korea and globally,” said a Hyundai Motor Group official.
The sustained growth in eco-friendly exports comes despite a global slowdown in EV demand and rising trade barriers, as some countries reduce or eliminate subsidies for imported EVs.
The United States limits EV consumer subsidies under the Inflation Reduction Act exclusively to vehicles assembled domestically.
France excluded certain EV models of Kia, the group’s smaller affiliate, from its subsidy lists.
Germany, Europe’s second-largest EV market, prematurely ended EV subsidies in December 2023.
As Hyundai navigated such unfavourable circumstances for EV sales, strong global demand for hybrids drove the increase in the company’s exports.
Experts also believe the upbeat exports of hybrids will continue for several more years.
“The high-performance 2.5-litre turbo hybrid engine, developed by Hyundai last year, cost over 200 billion won for the company. The decision could not have been made if the company was not confident that the high demand for hybrids would last for at least five or six years,” said Lee Ho-geun, a car engineering professor at Daeduk University.
“While the expected operational lifespan of recently rolled-out cars exceeds 10 years, people hardly expect a car fully powered by an internal combustion engine to remain mainstream.
“With constraints on internal combustion cars expected, people are more likely to choose hybrids as an alternative to EVs.”
Amid strong hybrid sales, the group plans to expand its hybrid lineup.
Hyundai Motor Group intends to equip both small and large vehicles with hybrid engines, moving beyond its previous strategy of focusing primarily on mid-sized cars for hybrid models.
The group also pledged to continue local investments to expand EV production and move ahead with plans to launch four additional EV models this year.
Kia has been producing its compact electrified sport utility vehicle EV3 model at its EV-only plant in Gwangmyeong, Gyeonggi Province.
Two additional plants dedicated entirely to EVs are under construction: one for Kia in Hwaseong, Gyeonggi Province, and the other for Hyundai in Ulsan.
“We will continue our efforts to revitalise the South Korean export economy by enhancing the competitiveness of our products and brand, increasing local investments, and establishing a flexible production and sales system,” said the Hyundai official. — The Korea Herald/ANN
