Accelerating Electrification Clock... "Electric Vehicles Will Dominate Within 10-20 Years"

Setting Deadlines for Internal Combustion Vehicle Sales Suspension in Each Country...Automakers Successively Declare Electrification Plans

[Asia Economy Reporter Yu Je-hoon] The ‘electrification’ clock of global automakers is accelerating. Leading companies and automakers worldwide are unveiling medium- to long-term blueprints to achieve 100% electrification within 10 to 20 years.

According to the industry on the 9th, Jose Munoz, Chief Operating Officer (COO) of Hyundai Motor Company and Head of the North America Division, appeared on Bloomberg Television’s Future Go program and stated, "All of Hyundai’s businesses will be electrified in major markets by 2040."

Munoz’s reiteration of the electrification plan he announced last year is interpreted as a response to the signs of a full-fledged electric vehicle competition in the global automotive industry, triggered by the recent launch of the Ioniq 5. The Ioniq 5 has forecasted success, having sold out its limited reservation quantity of 3,000 units not only in Korea but also in the European market.

Leading automakers have announced electrification plans one after another, stepping firmly into the electric vehicle era. Germany’s Volkswagen Group, the world’s second-largest automaker, has announced plans to launch 75 electric vehicle models by 2029. Volkswagen developed the MEB, an electric vehicle-dedicated platform, in 2018 and launched its first dedicated electric vehicle, the ID.3, in 2019. It also plans to release the ID.4 next year.

General Motors (GM) of the United States, competing with Hyundai in the 4th to 5th ranks, announced in January that it will cease production and sales of gasoline and diesel engine vehicles after 2035. GM plans to invest $27 billion (approximately 30.2 trillion KRW) in research and development over the next five years to achieve this goal. GM is placing its hopes on its self-developed ‘Ultium battery.’ To this end, it is currently pushing to establish a second vehicle battery plant in Tennessee, USA, in partnership with LG Energy Solution. This second plant is being established even before the completion of the joint plant in Ohio with LG Energy Solution.

Ford of the United States recently announced that it will invest a total of $29 billion (approximately 32.4 trillion KRW) in electric and autonomous vehicles by 2025. Additionally, it plans to convert its factory in Cologne, Germany, into an electric vehicle production plant and sell only electric vehicles in the European market starting in 2030.

The Hyundai Motor Group is no exception. Hyundai plans to raise the proportion of electric vehicle sales to 78% under the goal of not selling new internal combustion engine-based vehicles in major markets by 2040. Kia also unveiled its first dedicated electric vehicle, the EV6, and announced a blueprint to launch seven dedicated electric vehicle models by 2026 and sell 1.6 million eco-friendly vehicles annually by 2030.

The reason global automakers are joining the electrification race is also linked to the trend of tightening environmental regulations worldwide. Norway plans to stop selling internal combustion engine vehicles by 2025, the United Kingdom by 2030, and France by 2040.

The growth speed of the electric vehicle market is making automakers nervous. According to Bloomberg New Energy Finance (BNEF), the share of electric vehicles in the total automobile market is expected to rapidly expand from 10% in 2025 to 58% in 2040.

This content was produced with the assistance of AI translation services.