South Korean media: "Improving brand image" is Hyundai's top priority in China!

On April 8, the South Korean media "Today Finance" published an article stating that after 2016, Hyundai Motor Group suffered setbacks in the Chinese market, with its market share plummeting to 1%. With China's rapid advancement in electrification transformation, the status of foreign brands is shrinking. In fact, the share of foreign brands in the Chinese market has dropped from 64% in 2020 to 37% in the first half of 2024. This is not only a challenge for Hyundai but also a common challenge faced by all global automotive brands operating in China.

Despite these adverse conditions, Hyundai Motor Company has not abandoned the Chinese market but is seeking breakthroughs to restore competitiveness. In particular, the company is seizing the opportunity of the electrification transformation by making large-scale investments to prepare for a market leap.

Hyundai Motor and Beijing Automotive have each invested $548 million into Beijing Hyundai, totaling $1.096 billion. The two companies plan to invest funds in phases, and this investment will focus on electric vehicle R&D. Hyundai aims to enhance its competitiveness in the Chinese market and effectively respond to the rapidly changing market environment through this initiative.

Hyundai plans to launch electric vehicle models specifically designed for the Chinese market through Beijing Hyundai this year as part of its global push into the electric vehicle market. Additionally, it plans to introduce more hybrid models in 2026 and more extended-range electric vehicles in 2027, further strengthening its electric vehicle lineup. It also intends to continue increasing R&D and production investments to focus on enhancing brand competitiveness.

In the meantime, Hyundai is implementing a strategy to reassign the role of its Chinese factories, transforming them into production and export bases targeting overseas markets. By moving away from existing demand-centric operations and focusing on regions such as the Middle East, Southeast Asia, and Central Asia as primary export destinations, Hyundai not only promotes existing models but also expands export volumes through the introduction of new model lines.

In fact, last year, Hyundai's export performance from its Chinese factories significantly increased. Export volume expanded dramatically from 445 units in 2023 to 44,638 units in 2024, setting new records. Hyundai’s goal is for export growth to more than double this year, and it is expected to more actively utilize China as a global production base.

A South Korean industry insider stated, “China is the world's largest electric vehicle market, and although domestic brands are performing strongly, it remains an attractive market for global automotive manufacturers. Therefore, South Korean enterprises will also achieve breakthroughs by strengthening competitiveness.”

Experts also predict that South Korean automotive companies are likely to be positively influenced by China's domestic demand stimulus plans. Analysis suggests that due to the dominance of local enterprises, competition in the domestic market is fierce. However, if the brand image improves, profitability has sufficient room for recovery.

Kim Bae-soo, a professor at Daehan University's Department of Automotive Engineering, stated, “Although the global electric vehicle market is temporarily stagnant due to demand, the Chinese electric vehicle market continues to grow. In China, it is difficult to say that South Korean brands have stronger image competitiveness than domestic brands. However, if the brand image of electric vehicles can be improved through effective marketing strategies, performance could improve. Thus, improving the brand image in the Chinese market is the top priority for South Korean automakers.”

Original source: https://www.toutiao.com/article/1828833625694475/

Disclaimer: This article solely represents the views of the author.