[Beijing Motor Show 2026] Hyundai Aims for Revival After 24 Years in China With Major Shift to Eco-Friendly Vehicles

Participating in Auto China for the First Time in Two Years... Official Launch of the Ioniq Brand in China

Strategy to Optimize for the Chinese Market with New EV and EREV Models

'Momenta' Autonomous Driving Technology to Be Featured in New

After 24 years in China, Hyundai Motor Group is undergoing a transformation in the local market, repositioning itself as an eco-friendly vehicle brand led by electric vehicles (EVs). This is considered the most significant change since Hyundai Motor Group entered China, aiming to regain its sharply declined market share in the country.

The Venus concept (left) and Earth concept displayed at Hyundai Motorstudio Beijing. Hyundai Motor Company

According to industry sources on April 23, Hyundai Motor Company is set to unveil the first mass-produced model of its Ioniq brand for the Chinese market at the "2026 Beijing International Motor Show (Auto China 2026)," which opens on April 24 (local time).

Beijing Hyundai, which did not participate in Auto China 2025 in Shanghai last year, plans to announce its transition to a new energy vehicle (NEV) brand at this year's Beijing Motor Show. NEV is a broader concept that includes EVs, plug-in hybrid electric vehicles (PHEVs), and fuel cell electric vehicles (FCEVs).

Just ten years ago, in 2016, Hyundai Motor Group boasted a double-digit market share in China (6.5% for Beijing Hyundai and 3.7% for Dongfeng Yueda Kia), ranking among the "Big 3" alongside Volkswagen and General Motors (GM). However, following the THAAD (Terminal High Altitude Area Defense) incident, annual sales plummeted from over 1 million units to below 200,000 units. Factors included a boycott of Korean products and the company's insufficient response to the rapid technological advancements in China's auto industry, such as electric vehicles and autonomous driving.

While Hyundai Motor Group's influence in China waned, the Chinese automotive industry shifted from internal combustion engine vehicles to NEVs. EV brands such as BYD and Geely emerged as market leaders, and even IT companies like Huawei entered the automotive sector by leveraging electronics and semiconductors. A significant portion of Chinese consumers now favors the latest technologies, including EVs and autonomous driving. In fact, NEVs account for 54% of new car sales in China.

In this rapidly changing Chinese automotive market, Hyundai Motor Company has conducted years of market research and development to regain its confidence as a global top-three automaker. This is why the new Ioniq models to be unveiled at this year's Beijing Motor Show are drawing considerable attention.

Hyundai Motor Company set "localization" as its top priority, moving beyond merely launching EVs. For this purpose, autonomous driving technology developed by local IT company Momenta will be incorporated into the new models. In addition to new vehicles, Hyundai aims to build an "Ioniq ecosystem" by combining services and charging infrastructure tailored to local customer preferences, presenting a differentiated brand image befitting a "global top 3" automaker.

The company also plans to launch an extended-range electric vehicle (EREV) in China next year, taking into account the country's long-distance travel demands and charging infrastructure. EREVs can be charged via battery for regular use, but for long-distance driving, the electric motor can be powered by fuel. Both EREVs and PHEVs use electricity as the primary energy source and fossil fuel as a secondary source, but PHEVs can only travel 50-60 km solely on battery power.

Recently, the oversupply in the Chinese automotive market has become so severe that it is referred to as "cutting one's own flesh," a trend that is expected to benefit Hyundai Motor Group's resurgence in China.

According to the Chinese government's "15th Five-Year Plan (2026-2030)," only "intelligent connected NEVs" are classified as emerging strategic industries. In the previous 14th plan, all NEVs were included in this category, but the scope has now narrowed. This signals that the Chinese government intends to support only smart NEVs equipped with technologies such as autonomous driving and artificial intelligence (AI) in the future.

The "trade-in subsidy" (Yi Gu Huan Xin) for replacing old vehicles with NEVs was also recently changed from a fixed amount to a percentage-based system. Now, subsidies are based on a percentage of the vehicle price, encouraging consumers to purchase higher-end vehicles to receive greater discounts. This change has reportedly hit many local companies specializing in affordable EVs the hardest.

For Hyundai Motor Company, this means a more favorable environment to compete with local firms than in the past. At last month's shareholders' meeting, President Jose Munoz of Hyundai Motor Company announced the catchphrase "In China, For China, To Global," declaring, "By 2030, we will unveil six new EV models and achieve annual sales of 500,000 units" in China.

Hyundai Motor Company's Ioniq Brand Enters the Chinese Market with the Concept Car Earth. Hyundai Motor Company

Kia is also accelerating its electrification transition in China to align with local trends. The EV5, introduced at the Chengdu Motor Show in August 2023, is being mass-produced at the Yancheng plant and exported not only to the domestic Chinese market but also to Central and South America and Australia.

Beyond EV transition, Hyundai Motor Group is strengthening its collaboration with local partners in future industries as well. In January of this year, Hyundai Motor Group executives discussed comprehensive cooperation strategies with key companies in the battery, energy, and automotive sectors, such as CATL, Sinopec, and Yueda Group. The aim was to examine technological trends in the Chinese market and refine the group's mid- to long-term strategies.

With battery company CATL, Hyundai exchanged views on next-generation battery technologies such as CTP (Cell-to-Pack) and the creation of a stable supply chain. With energy firm Sinopec, the company is working to establish a hydrogen ecosystem centered on "HTWO Guangzhou," a hydrogen fuel cell system subsidiary in Guangzhou. Kia's local joint venture Yueda Group also agreed to build a sustainable business structure that extends beyond complete vehicle sales to include batteries, hydrogen, and future mobility.

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