[Electric Vehicle Era] 95 Trillion Won to Be Invested by 2026

Hyundai Motor and Kia to Build a Total of 31 Electric Vehicle Models by 2030
SsangYong Motor to Launch Torres Electric Vehicle Model Next Year
"Government Supports Industry... Aiming for 12% Global Market Share by 2030"

Editor's NoteAccording to the Ministry of Trade, Industry and Energy, 117,000 electric vehicles were sold from January to September this year. This figure has already surpassed last year's total annual sales of 97,000 units. Last month, for the first time ever, electric vehicle sales exceeded those of hybrid cars. As we enter the full-fledged era of electric vehicles, major domestic companies including automakers, SK, LG, Hanwha, and LS are moving swiftly to capture the expanding market. Just 20 years ago, smartphones were a distant future imagination. Now, we are preparing for a mobility revolution comparable to that of smartphones. This article examines the current issues and challenges faced by the automotive industry in transitioning to the era of electric vehicle popularization.

[Image source=Yonhap News]

[Asia Economy Reporter Yoo Hyun-seok] The government and automakers are making investments exceeding 95 trillion won to lead the electric vehicle market. In particular, automakers are trying to expand their market share by increasing electric vehicle production and producing various models.

According to industry sources on the 21st, among domestic automakers, Hyundai Motor and Kia are the most active in electric vehicle production. They launched the Ioniq 5, EV6, and GV60 last year, all based on the electric vehicle dedicated platform E-GMP. This year, they have consecutively released the Ioniq 6, electrified GV70 model, Niro EV, and high-performance EV6 model. As of the first half of this year, their global pure electric vehicle sales reached 167,305 units, ranking 5th.

Hyundai Motor and Kia plan to further expand domestic electric vehicle production. They will also gradually establish a mixed production system for internal combustion engine vehicles and electric vehicles, and expand electric vehicle dedicated lines in existing factories.

They are preparing not only by utilizing existing factories but also by building dedicated electric vehicle plants. Hyundai Motor plans to construct an electric vehicle dedicated factory on the test track site within the Ulsan plant. Kia will build a PBV electric vehicle dedicated factory at Autoland Hwaseong. Both aim for mass production by 2025. Along with this, they plan to expand their electric vehicle models. By 2030, Hyundai Motor will establish a lineup of 17 electric vehicle models and Kia 14 models, producing 1.44 million electric vehicles annually in Korea alone. Hyundai Motor Group has set a goal to sell a total of 3.07 million electric vehicles by 2030, achieving a 12% global market share.

Other automakers are also moving toward electrification, albeit at different speeds. SsangYong Motor, which restarted under KG Group's acquisition, plans to release new models following the success of Torres. Among these are electric vehicles. Next year, they plan to launch the electric vehicle 'U100' based on Torres, and in 2024, the electric Korando 'KR10' to expand their electrified lineup.

Renault Korea will focus on hybrids first rather than electrification. Based on the latest Volvo platform, they aim to launch a mid-size hybrid vehicle in 2024 in collaboration with the Geely Group. They have also left room for electrification possibilities. Luca de Meo, the CEO, recently visited Korea and said, "The Busan plant has been gaining assembly experience with Renault's ultra-compact electric vehicle 'Twizy' for several years," adding, "The pen is in my hand."

On the other hand, Korea GM has adopted a different strategy. They plan to import and sell 10 GM electric vehicle models by 2025. They have shown reluctance to produce electric vehicles domestically. At the recent 20th anniversary ceremony of Korea GM, President Roberto Rempel explained, "The Bupyeong and Changwon plants will be fully operational for strategic model production over the next two years, leaving no capacity for electric vehicle production," and added, "The decision on electric vehicle production involves multiple stakeholders and requires coordination; nothing has been finalized yet, and a timely decision will be made."

The government is also stepping up support. It plans to promote the '95 trillion won + α' investment planned by the automotive industry from this year through 2026, create new businesses in autonomous driving and mobility, and nurture 30,000 future vehicle specialists by 2030. Through this, it aims to produce 3.3 million electric vehicles by 2030 and increase the global market share from 5% to 12%.

Professor Kim Pil-soo of Daelim University’s Department of Automotive Engineering said, "In the electric vehicle era, leadership is crucial, making the roles of both automakers and the government important," and added, "As the transition to electric vehicles occurs, there could be sudden disruptions in areas such as workforce and maintenance, so it is necessary to mitigate these impacts."

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