"Eco-friendly Cars Become Foreign Currency Earners: Hyundai Motor and Kia Account for One in Three Exports"

Hyundai and Kia Achieve Record High Exports of 700,000 Green Cars Last Year
Flexible Production System Plays Key Role Despite Sluggish EV Demand at Home and Abroad

Hyundai Motor Company and Kia exported more than 700,000 eco-friendly vehicles last year, marking an all-time high. Eco-friendly vehicles refer to hybrids, electric vehicles, plug-in hybrid electric vehicles (PHEVs), and hydrogen fuel cell vehicles. Despite sluggish demand for electric vehicles, the increase in eco-friendly vehicle exports is attributed to a flexible production system playing a significant role.

On the 14th, the companies' preliminary export performance data for last year showed that eco-friendly vehicle exports reached 707,853 units, about 3% higher than the previous year (687,420 units). Considering that Hyundai and Kia's total exports slightly decreased from 2,216,231 units to 2,186,098 units during the same period, the share of eco-friendly vehicles in exports rose from 31.0% to 32.5%.

The driving force behind eco-friendly vehicle exports was hybrid vehicles. Although electric vehicle demand was sluggish both domestically and overseas, hybrid demand increased, boosting exports. Hybrid vehicle exports reached 397,200 units, a 45% increase from the previous year. They also accounted for 56% of total eco-friendly vehicle exports. The companies explained, "By expanding the hybrid lineup and establishing a flexible production and sales system, we were able to respond promptly to market demand changes."

The most exported model was Hyundai's compact SUV Tucson Hybrid, with 93,547 units shipped overseas. The Kona Hybrid exported 70,353 units, and the electric vehicle Ioniq 5 exported 68,227 units. Kia shipped 69,545 units of the Niro Hybrid, 42,488 units of the EV6, and 38,297 units of the Sportage Hybrid.

Hybrid vehicles were initially expected to serve as a bridge during the electrification transition. Due to slower-than-expected battery price declines, electric vehicles remain expensive, and infrastructure issues such as inconvenient charging have not improved, causing pure electric vehicle demand to stagnate worldwide.

With economic downturns and soaring oil prices, interest in fuel efficiency has increased, leading to steady growth in hybrid demand both domestically and internationally. Compared to European and American automakers, Asian manufacturers like Hyundai, Kia, and Toyota are regarded as having relatively strong hybrid lineups. In terms of profitability per unit, hybrid vehicles are the highest, playing a significant role in strengthening the companies' financial structures.

Hybrid vehicle parked in an eco-friendly car-only parking zone in Seoul. Photo by Yonhap News

Hyundai Motor Company and Kia Achieve $50 Billion in Exports for Two Consecutive Years
Market Conditions Remain Challenging, but New Plants and Improved Product Competitiveness Contribute

Hyundai Motor Company and Kia exceeded 2 million units in exports and $50 billion in export value last year, following 2023. Their export value of $53.4 billion last year accounted for 7.8% of South Korea's total exports of $683.8 billion and 75% of the automobile export value of $70.8 billion.

The most exported model among all vehicle types was Hyundai's compact sedan Avante, with 231,069 units. Hyundai's Kona (222,292 units) and Kia's Sportage (136,533 units) were also heavily exported. SUVs accounted for 69% of exports by vehicle type. By region, North America, including the United States, accounted for 56%, followed by Europe (19%), Asia-Pacific (9%), Middle East and Africa (9%), and Latin America (5%).

Hyundai and Kia's cumulative export volume was approximately 56 million units as of last year. Kia began overseas market expansion by exporting the Brisa pickup to Qatar in 1975, followed by Hyundai exporting the Pony to Ecuador the following year. Hyundai's cumulative exports reached about 32 million units, and Kia's about 24 million units.

Vehicles are waiting at the export shipment dock of Hyundai Motor Company's Ulsan plant. Provided by Hyundai Motor Group

However, export conditions this year are expected to be challenging. Global low-growth trends, strengthening protectionism, and intensified competition among companies are burdensome factors. The companies plan to upgrade domestic facilities, enhance brand competitiveness, and target emerging markets to increase exports. Following the start of operations at Kia's Gwangmyeong electric vehicle-exclusive plant last year, the Kia Hwaseong plant will begin operations in the second half of this year, followed by Hyundai's Ulsan plant in the first half of next year.

The diversification of hybrid models is also a positive factor. While hybrids were mainly applied to compact and mid-size segments, they are now expanding to small, large, and premium segments. The upcoming launch of the mid-large SUV Palisade this month will feature the next-generation hybrid system TMED-II, which improves performance and fuel efficiency. Electric vehicles will be bolstered by large electric vehicles like the Ioniq 9, as well as the EV3, EV5, and EV4. A company official stated, "We will strive to strengthen product and brand competitiveness and increase domestic investment to contribute to revitalizing the export economy."

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