South Korean media: Chinese cars account for 70% of the Southeast Asian market, Hyundai needs to restructure its strategy. BYD (Build Your Dreams), Chery, and other Chinese automobile manufacturers are accelerating their conquest of the Southeast Asian electric vehicle market after making inroads into the European market. Despite Hyundai's local production system in the region, analysis suggests that Hyundai needs to readjust its Southeast Asia strategy. According to data released by the U.S.-based market research firm Rho Motion on the 18th, approximately 70% of the sales volume of environmentally friendly vehicles (pure electric vehicles and plug-in hybrid electric vehicles) in Indonesia, Thailand, and Malaysia last year was dominated by Chinese automotive brands. Currently, environmentally friendly vehicles account for 14% of the overall automotive market in Southeast Asia, which is rapidly expanding, with most of the share being monopolized by Chinese enterprises. In particular, the competition in the electric vehicle market in Indonesia, the largest automotive market in Southeast Asia, has become increasingly fierce. Last year, Indonesia's electric vehicle sales reached 43,188 units, an increase of 150% year-on-year. This growth trend is led by Chinese electric vehicle enterprises. According to statistics from the Indonesian Automotive Industry Association (GAIKINDO), the top four pure electric vehicle sales in the first quarter were all Chinese brands. BYD ranked first with 5,718 units, followed by Wuling (4,795 units), Chery (4,399 units), and Denza (2,524 units). Hyundai, ranking fifth, sold only 573 units, just one-tenth of BYD's sales. The strong expansion of Chinese brands is mainly due to the saturation of the domestic market, prompting automakers to shift their focus to emerging markets and aggressively enter with low-price strategies. Chery's sales in Indonesia increased by 200% year-on-year in the first quarter and is expected to become the first Chinese automaker to reach cumulative exports of 5 million units by the end of this month. Notably, Chinese brands are also beginning to make a name for themselves in the high-end electric vehicle market. Denza, BYD's high-end brand, despite having a price close to 90 million won, still achieved sales of 2,524 units in Indonesia. This indicates that local consumers' trust and recognition of Chinese electric vehicles have significantly improved, surpassing price competitiveness. Chinese enterprises are optimistic about the potential of the Southeast Asian market and are continuously making large-scale investments. BYD plans to complete a factory in Indonesia this year with an annual production capacity of 150,000 units. Additionally, Changan Automobile, Geely Automobile, XPeng Motors, and others are adopting similar strategies to enter Southeast Asia. On the part of Hyundai Motor, it established a dedicated electric vehicle production plant in Indonesia in 2022, building a local production and sales system. Last year, it also formed a joint venture with LG Energy Solutions to establish HLI Green Power, creating a production system for the KONA EV. However, due to the faster-than-expected expansion of Chinese brands, Hyundai is facing severe challenges. In particular, in the first quarter of this year, its overall sales in Indonesia (including internal combustion engine vehicles and environmentally friendly vehicles) decreased by 3.9% year-on-year, with a market share of only 3.4% (6,958 units). In the internal combustion engine vehicle market, it was suppressed by Japanese brands such as Toyota and Mitsubishi, while in the electric vehicle market, it lagged behind Chinese automakers. Hyundai plans to expand local production models and emphasize technological competitiveness. It is reportedly studying localization strategies for high-end electric vehicles considering the demand for premium brands locally. To enhance brand awareness, it is actively promoting sports marketing and signed an official cooperation agreement with the ASEAN Football Federation (AFF), sponsoring the ASEAN Championship to strengthen regional marketing. Professor Lee Ho-geun of Daeduk University's Department of Automotive Engineering commented, "Indonesia, with its population of over 280 million, active promotion of electric vehicle policies by the government, and advantages in battery raw material supply, is an attractive market." He also said, "As Chinese companies launch a full-scale offensive, Hyundai needs to differentiate itself in areas such as after-sales service." Source: JoongAng Ilbo Original: https://www.toutiao.com/article/1835323771992064/ Disclaimer: The article solely represents the author's views.