Hyundai Motor Company has identified the global expansion of Chinese new energy vehicles (NEVs) as a major management risk factor for this year. As electric vehicle companies such as Xiaomi and BYD strengthen their global presence with low-priced products, Hyundai has significantly raised its alert level.

On the 20th, at the 57th annual general shareholders' meeting held at El Tower in Seocho-gu, Seoul, Hyundai Motor President Jose Munoz stated, "This year, competition in the industry will become even fiercer due to the overseas expansion of Chinese NEV companies," adding, "We will seek opportunities with our DNA of challenge." In addition to Chinese NEVs, he cited trade and geopolitical uncertainties, increased volatility in exchange rates and U.S. interest rates, weakened consumer sentiment, and rising inventories as key management issues to address this year.

President Munoz said, "The uncertainty ahead of us is at an unprecedented level, but it is a situation faced by all global automobile companies." He suggested regional optimization, strengthening EV leadership, and enhancing collaboration with global partners as solutions.

Regarding the operation of the Meta Plant America (HMGMA) in Georgia, USA, he said, "We plan to establish a mixed production system to additionally produce hybrid models," emphasizing, "Through a localization strategy in the U.S., we will flexibly respond to any policy changes." HMGMA will produce electric vehicles such as the Ioniq 5 and Ioniq 9.

Everyone is in crisis... Hyundai Motor has a challenge DNA

The New Ioniq 5. Photo by Yonhap News

To expand its EV leadership in the U.S. market, Hyundai is also focusing on improving charging infrastructure. Not only will it adopt the North American Charging Standard (NACS) system, which is exclusive to Tesla, but it also plans to expand the 'IONNA' charging system, created in partnership with BMW, Mercedes-Benz, GM, and others. IONNA, Hyundai's ultra-fast charging service brand, plans to install about 30,000 charging stations across the U.S. over the next five years.

In Europe, another key market, Hyundai plans to respond to increasingly strict carbon emission regulations by equipping vehicles with customized engines. In the Middle East, it announced plans to build a CKD (completely knocked down) plant in Saudi Arabia with an annual capacity of 50,000 units to meet local demand. In China, where Hyundai is struggling due to the rising market share of local EV companies, it plans to launch a locally tailored electric vehicle in the near future.

Exterior view of Hyundai's dedicated electric vehicle factory in the United States. Photo by Yonhap News

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President Munoz emphasized that Hyundai will expand strategic collaboration with global partners. This includes affiliates such as Boston Dynamics, Supernal, Motional, and 42dot, as well as global companies like GM and Google Waymo. With GM, Hyundai is considering various forms of cooperation, including joint vehicle development and parts procurement, while with Waymo, the sixth-generation fully autonomous driving technology will be applied to the Hyundai Ioniq 5 and used in the autonomous driving service 'Waymo One.'

At the shareholders' meeting, Hyundai added 'hydrogen business and other related businesses' to its articles of incorporation. The company explained that this change was made to consider the potential for broad expansion in hydrogen-related businesses. This year, Hyundai will launch a successor to the Nexo hydrogen fuel cell vehicle and an improved version of the Xcient hydrogen fuel cell heavy-duty truck. Lee Ina, Executive Vice President of the Energy and Hydrogen Business Division, said, "Although there are uncertainties such as possible changes in U.S. policy direction, we want to use this as an opportunity to strengthen our commitment to hydrogen," adding, "We plan to expand the use of hydrogen fuel cells to various areas, including heavy equipment, as well as mobility."

The proposal to restructure the board of directors with a focus on ICT and semiconductor experts was also approved as originally proposed. Chairman Chung Euisun was reappointed as an inside director, and Jin Eunsook, Executive Vice President of ICT at Hyundai, was newly appointed. Jin is Hyundai's first female inside director. Newly appointed outside directors include Kim Soohee, former Head of Global Private Equity at Canada Pension Plan Investment Board (CPPIB); Do Jinmyung, former Vice Chairman of Qualcomm Asia; and Benjamin Tan, former Asia Portfolio Manager at GIC (Government of Singapore Investment Corporation).