[Jeong Eui-seon 2 Years①] Global Top 3... Hyundai Motor Group's Rapidly Rising Status

Rising to 3rd Place After 12 Years Since 5th in 2010
Minimizing Production Disruptions in Supply Chain Management... Strengthening Fundamentals
"Leader in the Electrification Era" Strategy Also Effective

Editor's Note"I will make Hyundai Motor a world-class company." (March 1999, Chung Mong-koo's inauguration as Chairman of Hyundai Motor's Board)

"We aim to be a beloved company by realizing humanity's dreams together and sharing the fruits with customers worldwide." (October 2020, Chung Eui-sun's inauguration as Chairman of Hyundai Motor Group)

Chung Eui-sun, Chairman of Hyundai Motor Group, marks his second year in office on the 14th. Although Chairman Chung had been involved in various aspects of the automotive business early on, the reality he faced upon his inauguration was completely different from the past. While Chung Ju-yung, founder of Hyundai Group, and Chung Mong-koo, Honorary Chairman of Hyundai Motor Group, laid the foundation to make the name "Hyundai" known in the global finished car market, which had been built over a century mainly by leading advanced country companies, Chairman Chung Eui-sun inherited this and was tasked with navigating the industry’s period of upheaval. This is why he is seen as being in a position not just to refine what has been done well so far, but to attempt things no one has done before and gain recognition in the market. Now, two years later, we review the achievements Chairman Chung has made and examine the remaining challenges.

Hyundai Motor Group Chairman Chung Eui-sun, selected as this year's Visionary by Newsweek in April＜Photo courtesy of Hyundai Motor Group＞

[Asia Economy Reporter Choi Dae-yeol] Chung Eui-sun, Chairman of Hyundai Motor Group, marks his second anniversary on the 14th. Chairman Chung took the helm of the group in 2020, when COVID-19 was at its peak, and despite challenging conditions, elevated Hyundai Motor Group to a 'Global Top 3' automaker.

Considering that the automotive industry is a sector where economies of scale are distinctly evident compared to other industries, expanding the scale itself is regarded as having enhanced the company's competitiveness. Whereas in the past the company focused its capabilities on producing high-quality cars, it has now reset the group's direction to encompass mobility solutions that overcome the limitations of movement, such as autonomous driving and Advanced Air Mobility (AAM).

Ranked 5th for over a decade, rose two places within 2 years of Chairman Chung's inauguration

When Hyundai acquired Kia (formerly Kia Motors) in 1999, the combined production volume of the two companies was outside the top 10 globally. At that time, it was widely anticipated even in advanced automotive countries like the U.S. and Europe that the global finished car market would be reorganized into a 'Big 5.' The Big 5 mostly consisted of Western automakers such as General Motors (GM), Ford, and Volkswagen. It was generally expected that one Japanese automaker might also rise to prominence.

In the 2000s, when Chung Mong-koo, Honorary Chairman of Hyundai Motor Group, took direct control of management, the company began to expand its business seriously. In 2001, it entered the top 10 for the first time with 2.52 million units (9th place), and by 2010, it surpassed Ford to rise to 5th place. While previously focusing on domestic production for export, Hyundai Motor Group established finished car plants in key markets such as the U.S., Europe, and China, refining localization strategies. Chairman Chung Mong-koo set a goal of reaching the global top 5 from the early days of his tenure.

After maintaining 5th place for over a decade, the group jumped to 3rd place this year. According to IR materials from major finished car manufacturers, Hyundai Motor Group sold 3.299 million units worldwide from January to June this year. It ranks third after Japan's Toyota Group (5.138 million units) and Germany's Volkswagen Group (4.006 million units). This is a notable change in the global finished car industry, where rankings rarely shift without major mergers and acquisitions (M&A) or natural disasters. Along with scale, the group has also strengthened its fundamentals. Hyundai Motor and Kia posted sales of 106.5 trillion KRW and operating profit of 8.7 trillion KRW in the first half of the year, the best performance ever for that period.

This achievement came amid ongoing COVID-19 impacts and global parts supply difficulties caused by Russia's invasion. It was made possible by internalizing supply chain management capabilities and working organically with numerous parts suppliers and partners. Vehicle semiconductors originally allocated to the Russian plant were redirected to other overseas plants to minimize production disruptions.

Electric vehicles with dedicated platforms launched one after another
Recognized for quality in the U.S. and Europe... sales increasing

The strategy of selection and concentration was effective in responding to electrification. Chairman Chung saw securing competitiveness in next-generation technology fields, including core components such as motors, batteries, and advanced materials, as urgent. The transition to electrification was encouraged not only in research and development but also in production, sales, and even after-sales customer service. Following the consecutive launches last year of the Ioniq 5, EV6, and GV60, all based on the dedicated electric vehicle platform E-GMP, this year saw the release of the Ioniq 6, electrified GV70, Niro EV, and high-performance EV6 models. The expansion of charging infrastructure, a prerequisite for widespread electric vehicle adoption, was also directly undertaken.

As electric vehicles gained recognition for their quality and sales increased, Chairman Chung's often-emphasized slogan, "In the electrification era, we must be the first mover," proved to be more than just rhetoric. In the U.S., where electric vehicle adoption has accelerated this year, Hyundai Motor Group ranks second after Tesla for the first half of the year, and in Europe, it forms the Big 4 alongside local makers Volkswagen, Stellantis, and Tesla.

Hyundai Motor Group Chairman Chung Euisun is watching Indonesian President Joko Widodo sign the electric vehicle Ioniq 5 at the Hyundai Motor Indonesia plant completion ceremony held last March. Among automakers operating locally, Hyundai Motor is the first to produce electric vehicles.

According to market research firm EV Volume, Hyundai Motor Group ranked fifth worldwide in electric vehicle sales for the first half of this year. BYD and SAIC Motor, which ranked ahead, mostly sold within China. Unlike other manufacturers, Hyundai Motor and Kia produce all their electric vehicles domestically and sell them locally, making their achievements significant. In the hydrogen vehicle sector, expected to see increased use mainly in future commercial vehicles, Hyundai Motor Group has established a mass production system early on and holds a global market share of 60%.

In his New Year's address earlier this year, Chairman Chung stated, "We will enable electric and hydrogen vehicles to be used as power sources for various mobility and industrial sectors and systematically implement roadmaps and strategies to achieve carbon neutrality across the group."

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