Electric car news
The Chinese automobile market is changing, and Hyundai does not intend to be left behind. While many historic manufacturers are struggling to adapt to the electric revolution in China, the Korean giant is preparing a bold offensive. Find out how Hyundai plans to regain control of the world’s largest automotive market with a strategy focused on innovation and local adaptation.
The booming Chinese electric vehicle market
China has established itself as the undisputed leader in the electric vehicle market. The figures speak for themselves: last September, sales of new energy vehicles (including electric and plug-in hybrid cars) reached a record of 1.29 million units. This performance represents an impressive increase of 42% compared to the previous year.
Even more revealing, sales of electric cars exceeded those of thermal vehicles for the second consecutive month, gaining 51.8% of total sales of vehicles. This rapid transition to electric is putting many traditional manufacturers in difficulty, including Toyota, Volkswagen, GM and Honda, who are forced to reduce their workforce in China.
Hyundai faces a major challenge
Hyundai is no exception to this trend. Since 2017, Beijing Hyundai’s sales have been in free fall. At the end of September, the Korean manufacturer’s market share in China was only 1,2%. An alarming situation which calls for a rapid and effective reaction.
To meet this challenge, Hyundai has made a major strategic decision: the independence of its advanced research and development center in China. Located in Shanghai, this center is now Hyundai’s first overseas digital R&D center. This initiative marks the start of a new era for the manufacturer in China.
A bold strategy: electric cars designed for China
Yang Feng, general manager of Hyundai’s new R&D center, announced potentially game-changing news: the launch of first electric model dedicated to the Chinese market from next year. Unlike the brand’s other electric vehicles, this model will be specifically designed to meet the expectations of Chinese consumers.
This tailor-made approach will result in the integration of cutting-edge technologies and innovative designs. Hyundai not only develops its own technologies, but also partners with leading local suppliers. Partnerships have notably been concluded with Thundersoft, a specialist in intelligent cockpits, and Jianzhi Robotics, an expert in intelligent driving.
Innovation at the heart of the recovery strategy
The Shanghai R&D center will play a crucial role in this recovery strategy. Hyundai is banking on a clever combination of its manufacturing expertise and cutting-edge local technologies. The objective is clear: quickly catch up with national manufacturers.
This ambition could even be realized through the development of exclusive electric platforms for the Chinese market. Such an approach demonstrates Hyundai’s strong commitment to this strategic market.
- Development of technologies specific to the Chinese market
- Close collaboration with leading local suppliers
- Possibility of creating electric platforms dedicated to China
A strategic investment for the future
Hyundai’s initiative is part of a broader trend. According to Fang Yinliang, global director and partner at McKinsey, even foreign brands currently withdrawing from the Chinese market to protect profits could return, attracted by smart technologies developed in the country.
“Whether it is for foreign automobile brands or parts manufacturers, their investments in the Chinese market are likely to increase,” says Yinliang. It is not only a question of setting up R&D centers, but also of investing in innovative Chinese companies, whose advances will “benefit the global market”.
Impacts beyond Chinese borders
The technologies developed at Hyundai’s new R&D center in China will not be limited to the local market. They could well have a significant impact on the global exports of Hyundai and Kia.
This strategy could allow Hyundai to turn a challenge into an opportunity. By adapting to the requirements of the Chinese market, the Korean manufacturer could not only regain market share in China, but also strengthen its position on the international scene.
Hyundai’s offensive into the Chinese electric vehicle market is a bold bet that could redefine the manufacturer’s future. By combining global expertise and local innovation, Hyundai is giving itself the means to achieve its ambitions. It remains to be seen whether this strategy will allow the Korean giant to prevail in the face of fierce competition from local manufacturers and regain its place among the leaders of the Chinese automobile market.
Written by François Zhang-Ming
I have always shown a keen interest in science and technology from a very young age. I have a dual culture, Chinese through my mother and French through my father but also through my studies, which allows me to be very familiar with the technological innovations of the Far East.
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