Han media: "It's not the China of the past anymore," the million-unit sales of Korean cars in China have become a distant memory!

On January 17, the South Korean media "Chosun Economic" published an article stating that Hyundai Motor Group is now at a crossroads in the world's largest car market, China. The strong momentum of annual sales exceeding one million units that it once had has become a distant memory. In recent years, the sharp decline in market share and the subsequent factory closure news have become unavoidable realities.

Despite launching a series of new models, there is no sign of recovery, and as the brand's image gradually fades in the eyes of local consumers, Hyundai Motor faces a serious and simple problem: Is the Chinese market one that cannot be abandoned, or one that must be left?

China is no longer the China of the past. Especially in the field of electric vehicles, China has become an undisputed power, dominating in technology, price, and infrastructure. Domestic brands such as BYD, XPeng, NIO, and Geely are developing all aspects within their own ecosystems, from electric vehicle platforms to batteries, semiconductors, and even autonomous driving algorithms, effectively building a "closed-loop market."

At the same time, Hyundai Motor is still pushing forward its electric vehicle transformation centered on its global electric vehicle platform E-GMP. However, this technological advantage has failed to work in the Chinese market. Chinese consumers focus more on "cost-effectiveness" and "localization experience," making Hyundai's high quality and global appeal seem weak. Whether SUVs or sedans, the general perception is that Hyundai cars are expensive compared to local electric vehicles, lack emotional resonance, and are significantly inferior in software and connectivity features.

The bigger issue is not just low sales. Hyundai has already sold or closed some of its factories in China, and even the utilization rate of the remaining factories is uncertain. The dealer network is on the verge of collapse, and young consumers' brand loyalty has hit rock bottom.

Only ten years ago, Hyundai was synonymous with value for money in the Chinese market, but now it is deserted. Although exiting the market might reduce fixed costs and risks in the short term, it could also weaken its influence in the Asian electric vehicle market and deal a fatal blow to its global brand status.

Conversely, if it chooses to challenge again, it will need more complex and bold strategic adjustments. The previous strategy of "local production, global products" has been proven to be a failure, and now a comprehensive restructuring toward "local planning, local platform, local brand" is needed. This situation requires considering expanding cooperation with local Chinese partners, collaborating with software startups, and setting up a new "China-specific" low-cost electric vehicle brand.

However, this is an adventure involving astronomical investments, long-term risks, and no guaranteed returns. Success may bring the opportunity for a comeback, but failure could become a strategic mistake of a generation.

Hyundai Motor Group has achieved remarkable success globally. In the United States, despite the restrictions of the Inflation Reduction Act, it has still expanded its electric vehicle production bases. In Europe, it has increased its market share with outstanding design and quality, and maintains a strong presence in emerging markets such as India and the Middle East. However, in China, it has never found signs of recovery. In an era of rapid development of electric vehicles, completely abandoning the Chinese market, which accounts for more than half of global electric vehicle sales, could, in the long run, weaken the group's global leadership position.

Now, Hyundai Motor Group must make a decision.

Will Hyundai endure the continued downturn in the Chinese market, or will it completely exit the Chinese market and seek new development opportunities? Or will it once again make a comprehensive adjustment and shift to a "localization" strategy to face the challenges? Regardless of the choice, clear direction and execution are crucial. As the automotive industry in the 21st century is reshaping around electric vehicles, Hyundai's Chinese strategy is not just about a single market; it is a key task directly affecting the entire group's future.

Will Hyundai once again see China as a challenging environment, or will it boldly exit the market, reorganize its strength to face the future? This choice will soon become a symbol, reflecting the fate of the entire South Korean automobile industry.

Original: toutiao.com/article/1854526650116490/

Statement: This article represents the personal views of the author.