[Car Talk Forest] The Future of the Complete Vehicle Industry Set by Carbon Neutrality, Now a Speed War

Hyundai Motor to Achieve Carbon Neutrality by 2045
Internal Combustion Engine Vehicles to Disappear Soon

[Asia Economy Reporter Changhwan Lee] The biggest issue in the automotive industry recently is ‘carbon neutrality.’ Countries around the world are rapidly transforming their industrial structures by setting carbon neutrality as a key task to respond to climate change.

Internal combustion engine vehicles also emit a large amount of carbon dioxide, which is one of the causes of environmental degradation, so business transformation in the automotive industry is essential.

Hyundai Motor Group has committed to achieving carbon neutrality by 2045. On the 6th (local time), at the ‘IAA Mobility 2021’ motor show held in Munich, Germany, Hyundai Motor President Jang Jae-hoon said, "We will achieve carbon neutrality across products and business by 2045 and accelerate investment in eco-friendly mobility and energy solutions for a more sustainable future."

To this end, Hyundai Motor announced a goal to increase the proportion of electrified models among the complete vehicles sold worldwide to 30% by 2030 and 80% by 2040.

By region, the strategy is to make all models sold in the European market battery electric vehicles (BEVs) and hydrogen electric vehicles (FCEVs) by 2035, and to sequentially complete electrification of all sales vehicles in other major markets by 2040.

Hydrogen energy is also a core part of Hyundai Motor’s carbon neutrality strategy. Hydrogen is considered the ultimate eco-friendly fuel because it is abundant in raw materials and produces no emissions.

Hyundai Motor Group Chairman Chung Euisun declared at a press conference on the 7th that 2040 will be the inaugural year for the popularization of hydrogen energy. Chairman Chung said, "To accelerate the realization of a hydrogen society, all commercial new models to be released in the future will be either hydrogen electric vehicles or electric vehicles, and by 2028, hydrogen fuel cell systems will be applied to all commercial vehicle lineups."

Other global automakers are also rushing to achieve carbon neutrality through the transition to eco-friendly vehicles. Mercedes-Benz has declared that it will convert all models to pure electric vehicles by 2030. It plans to invest 40 billion euros (54.22 trillion KRW) in the battery electric vehicle sector alone.

Volkswagen aims to have half of its new car sales be electric vehicles by 2030. GM plans to launch 30 new electric vehicle models by 2025 and has declared that from 2035, it will no longer produce passenger cars and sport utility vehicles (SUVs) equipped with internal combustion engines.

Stellantis plans to release only electric vehicles for new cars starting in 2025. Volvo has also revealed a plan for a complete transition to electric vehicles by 2030.

The reason automakers are rapidly calling for carbon neutrality is also because regulations in each country are becoming increasingly stringent. The European Union (EU) is showing moves to effectively ban the sale of new cars equipped with internal combustion engines starting in 2035. This is a move to phase out internal combustion engine vehicles from the market.

The United States has also set a goal to convert half of the new cars sold in the U.S. to electric vehicles by 2030. Accordingly, the carbon neutrality transition of global automakers is expected to accelerate further.

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