Hyundai Motor Group Chairman Chung Eui-sun visited Hyundai Motor Manufacturing Czech (HMMC) in Nosovice, near the city of Ostrava, Czech Republic, on Nov. 19 (local time) to review the current status of the company’s European business and explore future growth strategies, and to express his gratitude for the efforts of local employees who are fulfilling their roles overseas despite the Chuseok holiday in Korea.
Europe, a battleground for green vehicles and the world’s second-largest electric vehicle market after China, has recently experienced growing uncertainty as major automakers slow down their electrification pace and major economies such as Germany and the U.K. are experiencing recessions.
According to the Association of the European Automobile Industry (ACEA), demand in the European automotive industry reached 7.969 million units through July, up just 3.9% from 7.619 million units in the first seven months of last year. That’s less than a third of the 12.7% annualized increase from 2022 to 2023.
The slowdown in EV demand is even more pronounced. In the first seven months of this year, European industrial demand for EVs was 1.038 million units, up just 0.6% from 1.071 million units in the same period a year earlier. In 2023, the overall EV industry demand growth rate is expected to be 28.2%.
With an eye on the rapidly changing European automotive market, Chairman Chung observed the situation and sought new solutions for future growth at Hyundai Motor’s only EV production site in Europe, Hyundai Motor Czech Republic, where he reviewed key local business issues.
Chairman Chung also encouraged employees by personally touring the production line of the Czech plant, which is accelerating the construction of a smart manufacturing platform in preparation for the era of full-scale electrification.
“I am grateful for the dedication, expertise, and strong support of the employees at the Czech plant,” said Chung. ”As a key base for future investments in our eco-mobility vision and technology, the Czech plant plays a critical role in Hyundai Motor Group’s continued success despite global market uncertainties.”
As a symbolic overseas production center for Hyundai Motor Group’s European operations, Hyundai Motor Czech Republic has made a positive impact on the local community through a variety of activities across economic, industrial, and social spheres, helping to establish Hyundai as a company beloved by the Czech people.
Most recently, Hyundai donated 10 million koruna (approximately KRW 600 million) to support the recovery of flood damage caused by Storm Boris, which hit central and eastern Europe. The donation will be delivered to the non-profit organization ‘People in need’ and will be used to help the Moravian-Silesian region near Hyundai’s Czech plant.
“We will continue to invest in and support quality and safety,” said Hyundai Motor Czech Republic Chairman and CEO Chung Eui-sun Chung. ”Quality, service, and talent are critical to sustaining the Czech plant’s excellent productivity and profitability.”
“While we are facing challenges due to the recent tectonic shift in the electric vehicle market, we will continue to strengthen our unwavering commitment to innovation and sustainable growth.”
By responding flexibly and agilely to changes in the European automotive market environment, Hyundai Motor Group aims to further consolidate its position as an electrification first mover in Europe, the world’s largest eco-friendly vehicle market, and create new breakthroughs for future growth.
In terms of production and sales, Hyundai will flexibly respond to the market environment with flexible production and a Europe-customized product mix across its entire lineup, including internal combustion engines, hybrids, and EVs, while simultaneously pursuing a mid- to long-term strategy to enhance its electrification capabilities.
To this end, Hyundai is filling the sales gap left by the slowdown in demand for EVs with competitive SUV hybrid models, led by the Tucson Hybrid, which is popular with European customers.
In addition to the second-generation Kona Electric, which is being produced in the Czech Republic, and the Ioniq 5, Hyundai’s flagship EV model exported from South Korea, Hyundai will launch Casper Electric (locally known as Inster) in Europe later this year to regain its leadership in EVs.
In particular, the Casper Electric is expected to serve as a strategic vehicle to lead Hyundai’s EV turnaround in Europe alongside the second-generation Kona Electric.
Kia is strengthening its EV lineup by introducing the EV6 with improved affordability, adding trims to make the EV9 more affordable for customers, and bringing the EV3 to Europe for the first time outside of Korea later this year.
Special editions of its flagship hybrid and plug-in hybrid models will be available to flexibly respond to changes in demand in the European market.
Hyundai will also pursue a growth strategy that enables it to respond flexibly to the European market’s pace of electrification.
In preparation for the recovery of the European electric vehicle market, Hyundai will gradually increase the number of locally produced EVs in line with industry demand according to its mid- to long-term roadmap.
Kia is also accelerating the establishment of a local production system for European EVs at Autoland Slovakia with a targeted start-up in the second half of 2025.
Kia also plans to enter the European light commercial vehicle (LCV) market with its Platform Beyond Vehicles (PBV). In this regard, Kia introduced PBV concept models such as the PV5 for the first time in Europe at the IAA Transportation 2024 in Hanover, Germany, on the 16th of this month.
Hyundai Motor Europe Technical Center GmbH (HMETC), one of the key global hubs for R&D, is also expanding its infrastructure.
Hyundai Motor Group aims to strengthen its competitiveness in Europe in various ways, including developing premium and high-performance models and enhancing the role of HMETC as a center for eco-friendly mobility development in the European region.
The center will strengthen research activities to enhance the price competitiveness of overseas-produced vehicles and expand local R&D capabilities to support the group’s entry into the European PBV market.
Meanwhile, even as the European market is slowing down the pace of electrification, Hyundai-Kia’s electric vehicles continue to win awards and acclaim locally.
This year, Hyundai’s Ioniq 6 was named the 2024 UK Car of the Year in the Family Car category, while the Ioniq 5 N was recognized as the Best EV Hot Hatch at the 2024 Top Gear Electric Vehicle Awards in the UK. Kia’s EV9 was named UK Car of the Year 2024 and Best 7-Passenger Electric Vehicle in the UK’s 2024 What Car Awards.
Safety has also been highly recognized. The Ioniq 5, Ioniq 6, EV6, EV9, and GV60 all received the highest rating of five stars in Europe’s New Car Assessment Programme (Euro NCAP).