Hyundai Motor and Kia Tighten Controls in US and Europe... Increasing Customized Strategies and Collaboration

Vice Chairman Jang Jae-hoon and Key Executives Reveal at New Year's Gathering

Jang Jae-hoon, Vice Chairman of Hyundai Motor Group, said on the 6th, "The most important part this year is to solidify our position in advanced markets," adding, "Although the environment in the US and Europe is challenging, we are working on various ways to overcome issues such as the electric vehicle chasm (temporary demand stagnation)."

Vice Chairman Jang was promoted in the year-end executive reshuffle last year and has been overseeing the entire group’s finished car business since this year. He also took charge of planning and coordination tasks that align work among affiliates. While continuing growth in the US, which has emerged as the largest market for Hyundai Motor and Kia, he faces the challenge of increasing electric vehicle sales in Europe ahead of stricter environmental regulations.

Regarding the rise of electric vehicle specialists like Tesla and BYD, Vice Chairman Jang said, "Electric vehicles must be viewed from the perspective of the entire ecosystem," adding, "We will ensure overall competitiveness by considering infrastructure aspects and expanding to software-defined vehicles (SDVs) beyond electric vehicles."

Jang Jae-hoon, Vice Chairman of Hyundai Motor Group. Provided by Hyundai Motor Group

Jose Munoz, who started working as Hyundai Motor’s CEO this year, said, "We will continue to invest resources to localize production where necessary," adding, "Since the automotive business is based on consumer demand, we are continuously investing in hybrids, electric vehicles, extended-range electric vehicles (EREVs), and internal combustion engine vehicles." He also revealed plans to relaunch Hyundai’s premium brand Genesis in Europe and to increase electric vehicle sales and strengthen R&D capabilities through a newly operational plant in the US.

Song Ho-sung, President of Kia, highlighted the purpose-built vehicle (PBV) business, which is under development and targeted for launch in the second half of this year, as a key task. He said, "The first PBV model, PV5, will be mass-produced at the Hwaseong dedicated plant, and through collaboration based on a conversion center, it is being developed for diverse uses such as cargo transport, passenger transport, utility services, and vehicles for the mobility-impaired," adding, "We will expand sales areas by providing optimal vehicles not only to new B2B customers but also to B2C customers." He emphasized that this not only introduces a new vehicle segment but also leads a paradigm shift in the mobility market.

Hyundai Motor Group Chairman Chung Euisun and executives are taking a commemorative photo at the '2025 Hyundai Motor Group New Year's Meeting' held on the 6th at Hyundai Motorstudio in Goyang, Gyeonggi Province. Photo by Kim Hyunmin

In the US, where the second Trump administration is about to take office, it is expected that policy changes can be addressed according to various scenarios. Sung Kim, President of Hyundai Motor, said, "We have been planning for a long time, so we believe we are somewhat prepared," adding, "There is no need to jump to conclusions before the new administration starts; we should observe how policies change according to different scenarios and respond accordingly."

President Song also said, "How to manage the model mix and absorb tariffs according to the Trump administration’s policies will be important, but this is not an issue unique to us; all companies face the same issue, so we just need to respond appropriately," adding, "Since Hyundai Motor Group’s operating profit margin is not behind others, I think our flexibility will be better than other companies."

Jose Munoz, CEO of Hyundai Motor Company. Provided by Hyundai Motor Group

Plans for logistics efficiency across finished vehicles and parts were also presented. Lee Kyu-bok, President of Hyundai Glovis, said, "We will expand investments in multimodal logistics capabilities including maritime, land, and air," adding, "To stabilize production at overseas plants, we will provide both parts supply and logistics stability and efficiency through integrated CKD management for KD parts and dealership countries."

He also mentioned the necessity of various external collaborations. Vice Chairman Jang said, "Since the investment scope in new technologies and new business areas such as batteries and hydrogen is broad and takes a long time, collaboration is necessary not only with General Motors (GM) but also with Toyota and other finished car manufacturers to build competitiveness," adding, "If it helps growth, we will continuously expand collaborations without boundaries, including with big tech companies outside of automotive OEMs."

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