[Visiting Net Zero No.1] The Secret Behind Hyundai's Market Share Comeback: 'Car Semiconductor Supply Operation'

[Nosovice (Czech Republic) = Asia Economy Reporter Kim Hyewon] Some employees of Hyundai Motor's Czech production subsidiary camped out in tents last year near the factory yard, enduring unexpected overnight stays. The reason was simple: to load and ship even one more vehicle faster to deliver it to customers. For example, if they could secure even a small quantity of camera-related parts affected by the vehicle semiconductor shortage, they would immediately assemble them on-site, undergo inspection, and transport the vehicles as quickly as possible. This approach was calculated to save time compared to waiting until all 30,000 parts were secured before starting vehicle production. They even went as far as visiting competitors and pleading, "If you can't produce it now anyway, sell it to us."

The background behind Hyundai Motor's Czech production subsidiary overtaking Volkswagen last year to claim second place in the Czech market sales ranking lies in this vehicle semiconductor 'supply operation.' Amid the global vehicle semiconductor shortage that struck the automotive industry last year, Hyundai and Kia were the only ones to expand their market share in the Czech market.

According to the Czech Car Importers Association (SDA) on the 3rd, Hyundai's cumulative sales in the Czech market from January to November last year reached 18,514 units, securing second place in market share. This was a one-rank rise from third place during the same period the previous year. The Czech automotive market is dominated by the 'national company' ?koda, which maintains a commanding first place with a market share in the 30% range, so global companies effectively compete for rankings starting from second place. Hyundai widened the gap with Volkswagen (8.30%), which was second in 2019, to 1.41 percentage points. Toyota (4.90%) and Kia (4.77%) followed. Kia also rose two ranks compared to the same period last year (7th place).

The strong performance of Hyundai and Kia in the Czech Republic, where sales volume is significant, led to an overall increase in market share across Europe. According to the European Automobile Manufacturers Association (ACEA), Hyundai Motor Group's new car sales from January to November last year increased by 23% year-on-year to 943,433 units. Among the top five automotive groups, Hyundai Motor Group was the only one to record double-digit growth compared to the previous year. The first-place Volkswagen Group (-0.5%) and third-place Renault Group (-10.9%) experienced declines, while second-place Stellantis (0.8%) and fifth-place BMW Group (4%) remained largely flat.

The Hyundai Motor Czech plant was a completely different world from Korea, where customers were frustrated by not receiving vehicles on time due to semiconductor shortages limiting production. The Hyundai-exclusive delivery waiting lot on one side of the factory, capable of holding 8,600 vehicles, was filled with fresh new cars produced at the Czech plant. About 1,200 to 1,300 vehicles were shipped out daily, with 35% transported by train and 65% by truck via the railway loading yard within the factory premises.

New cars produced here were sold in 72 countries worldwide last year, excluding the Middle East and North America. The number of export countries is increasing annually, with plans to expand further. The main market is Western Europe.

Nosovice (Czech Republic) = Reporter Kim Hyewon

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