[Going to Net Zero No.1] K-Eco-Friendly Cars Break Through European Barriers

Hyundai Motor Company and Kia Set New Records in Europe with 1 Million New Cars and 100,000 Electric Vehicles

[Nosovice (Czech Republic) = Asia Economy Reporter Kim Hyewon] Hyundai Motor and Kia have set a new ‘100-10’ record in the European market. As new car sales recovered to 1 million units, the pre-COVID-19 level, and more than 10% of those were electric vehicles, they have opened a new era in Europe, the ‘net-zero hotspot.’

According to Hyundai Motor Group and the European Automobile Manufacturers Association (ACEA) on the 3rd, Hyundai Motor and Kia each surpassed 1 million new car sales and 100,000 electric vehicle sales in the European market last year. Their market share is estimated to have risen from the high 8% range to the low 9% range. ▶Related feature article on page 4

Hyundai Motor and Kia first broke the 1 million unit sales record in the European market in 2018, 41 years after entering the market. They also sold over 1 million units in 2019, but sales dropped to about 840,000 units in 2020 due to the direct impact of COVID-19.

The recovery to 1 million units is especially significant because electric vehicle sales exceeded 100,000 units for the first time. This achievement is remarkable as it was accomplished in a region with the world’s strictest automotive environmental regulations. A local partner said, "In addition to the Kona EV produced locally in Europe, we plan to expand the electric vehicle lineup this year with models like the Kia Niro EV, and our partners are preparing accordingly."

This year, Hyundai Motor Group plans to make a foray into the European market not only with electric vehicles but also in the hydrogen sector. They are closely monitoring the Czech government’s hydrogen fuel cell bus and other hydrogen fuel cell distribution policies and have reportedly set an internal strategy to outpace competitor Toyota and secure volume.

As a major automobile power tightening efforts to achieve carbon neutrality, there are calls for South Korea to prepare a special policy roadmap from the perspective of responding to the automotive industry’s transition. According to the final report of the ‘Policy Measures Study on Domestic Electric Vehicle Supply Conditions for Carbon Neutrality,’ commissioned recently by the Korea Automobile Manufacturers Association (KAMA) to Innosync Consulting, achieving the government’s ‘2030 National Greenhouse Gas Reduction Target (NDC)’ with zero-emission vehicles (3.62 million electric vehicles and 880,000 hydrogen vehicles) will incur costs of about 79 trillion KRW.

It is calculated that 66.4 trillion KRW is needed for zero-emission vehicle purchase subsidies and 12.3 trillion KRW for infrastructure construction costs. This means an average annual cost of 7.8 trillion KRW from 2021 to 2030. Jeong Manki, chairman of KAMA, said, "The promotion of eco-friendly vehicle supply must be based on objective and scientific grounds," adding, "The system, including the severely insufficient infrastructure and decreasing subsidies, must be urgently reformed to attract both demand and supply to the market and achieve economies of scale in the industry itself."

Nosovice (Czech Republic) = Reporter Kim Hyewon

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