[Reporter’s Notebook] The Avante Disappears from Beijing... Can Hyundai Make a Comeback?

"Ten years ago, almost all taxis were Avantes. Now, it's hard to find even a single one."

The local guide's comment on the ride from Beijing Airport to the city center was no exaggeration. The roads outside the window were packed with electric vehicles from BYD, Geely, and other unfamiliar Chinese brands. Spotting a Hyundai emblem among them was more challenging than expected. When I came across a Santa Fe in the motor show parking lot, it was almost a relief.

Back in 2016, Hyundai Motor Company, which was selling more than 1 million vehicles annually in China, enjoyed a double-digit market share and was called one of the "Big 3" alongside Volkswagen and General Motors (GM). However, after the THAAD (Terminal High Altitude Area Defense) incident, sales plummeted to below 200,000 units. Hyundai also fell behind local brands such as BYD and Geely Group in the race toward electrification.

This is why this year's Beijing Motor Show holds special meaning for Hyundai. It was an opportunity for the company to officially declare its determination to make a comeback, led by the China-specific model 'IONIQ V.' The secret behind Hyundai once filling Beijing with Avantes was thorough localization. Ahead of the Beijing Olympics, China needed to replace its old, heavily polluting Volkswagen taxis, and Hyundai seized the opportunity. The Avante, customized for the Chinese taxi market, once captured over 80% market share.

Now, 18 years later, Hyundai is once again turning to localization. For autonomous driving, it has partnered with China's Momenta to implement Level 2+ technology, and for batteries, it chose China's CATL. Even the color has meaning: when the stage lights came on, the IONIQ V appeared in gold—a color most beloved by Chinese people as a symbol of wealth and good fortune. In front of it, Hyundai President Jose Munoz unveiled the ambitious slogan: "In China, For China, Towards the World."

The company's future strategy also inspires anticipation. China is the most competitive market in the world for autonomous driving and software-defined vehicles (SDV), known as "computers on wheels." Hyundai plans to launch its own SDV platform by 2028, equipping vehicles with Level 3 autonomous driving that allows cars to drive themselves without driver intervention. To meet the needs of Chinese drivers who often travel long distances, Hyundai will also introduce an extended-range electric vehicle (EREV) that generates electricity from an engine when the battery runs low to increase driving range.

However, competition in China's automotive industry is now far fiercer than during the Beijing Olympics. If Hyundai cannot demonstrate overwhelming software competitiveness, beyond simply producing good hardware, the goal of selling 500,000 units by 2030 could end up as nothing more than an empty slogan. I hope that on my next business trip, seeing a Hyundai emblem on the streets of Beijing will be an "expected sight," not just a "pleasant surprise."

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