▲ Hyundai Motor Ulsan Plant IONIQ 5 production line (Photo courtesy of Hyundai Motor Group)



Establishment of dedicated factory, accelerating the construction of future automobile production hub
Target of approximately 12% global electric vehicle market share by 2030

Hyundai Motor Group is investing a large budget to advance the domestic electric vehicle ecosystem, including production capacity and infrastructure.

Hyundai Motor and Kia announced on the 18th that they will invest a total of 21 trillion won in the domestic electric vehicle sector by 2030 and significantly expand the annual domestic production of electric vehicles, which is expected to reach 350,000 units in 2022, to 1.44 million units by 2030.

1.44 million units is a volume equivalent to 45% of Hyundai Motor and Kia's global electric vehicle production by 2030. Hyundai Motor and Kia plan to produce 3.23 million electric vehicles globally by 2030.

Hyundai Motor and Kia's large-scale investment in the domestic electric vehicle sector is intended to advance the domestic EV ecosystem and strengthen their role as a hub leading innovation in the global future automotive industry.

In addition, a virtuous cycle involving domestic electric vehicle production, R&D, infrastructure, and related industries is expected to be promoted.

▲ Kia Autoland Hwaseong EV6 production line (Photo courtesy of Hyundai Motor Group)

As part of its expansion of domestic electric vehicle production, Kia officially announced plans to invest hundreds of billions of won in AutoLand Hwaseong to build a new dedicated factory for new-concept PBV (Purpose Built Vehicle) electric vehicles with an annual production capacity of up to 150,000 units.

The 21 trillion won that Hyundai Motor and Kia will invest in the domestic electric vehicle sector by 2030 will be used to expand electric vehicle production capacity, diversify the dedicated electric vehicle lineup, develop parts and advanced technologies, establish infrastructure, and pursue strategic alliances to explore various new businesses related to electric vehicles.

First, to expand domestic electric vehicle production capacity, we will pursue the establishment of a dedicated PBV (Purpose-Built Vehicle) factory, the gradual implementation of a mixed-model production system for internal combustion engine vehicles and electric vehicles, and the expansion of dedicated electric vehicle lines at existing factories.

In the interest of electric vehicle production innovation and optimization, the flexible production system, customized logistics system, and digital manufacturing system from Hyundai Motor Group’s future manufacturing innovation technology incubator, the Singapore Global Innovation Centre (HMGICS), have been installed in domestic factories.Introduce systematically.

Both companies will also invest heavily in research and development, including the development of next-generation electric vehicle-dedicated platforms, expansion of product lineups, development of core components and advanced technologies, and establishment of research facilities. They will also revitalize domestic technology development in collaboration with their partners.

Through this, integrated product competitiveness encompassing hardware and software is strengthened, including diversifying the dedicated platform product lineup, advancing PE (Power Electric) systems such as batteries and motors which are key to electric vehicle performance, and developing technology to increase the All Electric Range (AER).

We are also accelerating the securing of next-generation platforms to fundamentally improve the performance of electric vehicles. We plan to sequentially develop various dedicated platforms for each vehicle class under the 'Integrated Modular Architecture (IMA)' system, starting with the 'eM' platform dedicated to passenger electric vehicles to be introduced in 2025. A platform utilizing an integrated modular architecture can improve product development speed and efficiency by standardizing batteries and motors.

Infrastructure sectors, such as electric vehicle charging solutions and customer services—the core foundation for the widespread adoption of electric vehicles—are also investment items.

The two companies launched the electric vehicle ultra-fast charging brand 'E-pit' in March of last year, and the electric vehicle charging service platform (E-CSP, E-pit Charging Service Platform) in April of this year.

In addition, it will establish a special purpose corporation (SPC) with Lotte Group and KB Asset Management to expand electric vehicle ultra-fast charging infrastructure, develop a business model for leasing chargers up to 200kW, and install 5,000 ultra-fast chargers in major urban areas nationwide by 2025.

We are also seeking extensive strategic partnerships related to electric vehicles. We are pursuing new businesses with domestic and international partners in areas such as batteries, charging, and UBESS (Used Battery Energy Storage System), which utilizes end-of-life batteries as energy storage devices.

A Hyundai Motor Group official stated, “The global electric vehicle market has moved beyond its infancy and a full-scale competition for dominance has begun,” adding, “Hyundai Motor Group will respond agilely to the wave of eco-friendly future mobility through large-scale domestic investment and R&D.”

Korea's first dedicated new-concept PBV electric vehicle factory, to be newly established at Kia Autoland Hwaseong, is a representative hub for future automotive innovation symbolizing 'EV Transformation'.

The dedicated PBV electric vehicle factory plans to invest hundreds of billions of won in a site of approximately 20,000 pyeong, aiming to begin construction in the first half of 2023 and mass production in the second half of 2025. At the time of mass production, we will secure an annual production capacity of 100,000 units and expand it to up to 150,000 units in the future depending on market conditions.

Kia President Song Ho-sung stated regarding the dedicated PBV electric vehicle plant, “It is a major pillar of Kia’s ‘Plan S,’ which aims to become the No. 1 brand in the global PBV market.” He added, “In the short term, Kia will pioneer new markets with derivative PBVs, and in the mid-to-long term, we will gradually increase the global supply of PBVs by leveraging dedicated PBVs and autonomous driving technology.”

Kia's dedicated PBV electric vehicle factory will be constructed as an eco-friendly facility that minimizes carbon emissions by extensively applying future innovative manufacturing technologies. It also pursues efficiency and intelligence through technologies from Hyundai Motor and Kia's smart factory brand, E-FOREST, including digital manufacturing systems.

In addition, based on the mid-to-long-term strategy 'Plan S', the company plans to actively expand its PBV business combined with new mobility services. Last February, it launched the Ray single-seater van suitable for last-mile delivery, and in April, it unveiled the design and key features of the first derivative PBV, the Niro Plus.

SW (project name), the first model of the dedicated PBV lineup set to be unveiled in 2025, is being developed as a mid-size vehicle. Based on the skateboard-shaped 'eS' platform dedicated to PBV electric vehicles, it can flexibly combine various types of bodywork. Equipped with a spacious interior reaching the height of an adult and excellent cargo capacity, it appears capable of meeting various business demands, such as delivery, car hailing, and business-to-business (B2B) transactions.

In addition, it is equipped with the ability to wirelessly update the vehicle's system in real time (OTA, Over The Air) and meets durability tests of up to 600,000 km based on the vehicle body, combining performance and economic efficiency to help operators reduce the Total Cost of Ownership (TCO).

Following the launch of the SW, a mid-size PBV, Kia plans to expand its product lineup to include a Micro-Size PBV optimized for the delivery of food and household goods, a Large-Size PBV that can be used for general logistics, fresh food delivery, multi-passenger shuttles, and mobile offices and stores.

Meanwhile, Jang Young-jin, First Vice Minister of Trade, Industry and Energy, visited Kia Autoland Hwaseong on the same day to share Hyundai Motor Group’s mid-to-long-term investment in electric vehicles and plans to build a dedicated PBV electric vehicle factory, and then exchanged broad opinions on ways to develop the future mobility industry.

First Vice Minister Jang Young-jin stated, “It is highly significant that Hyundai Motor and Kia have decided to make large-scale investments in Korea despite uncertain domestic and international conditions.” He added, “As the mobility revolution is gaining momentum with the automotive industry converging with services such as infotainment and robotaxis, I ask that companies further accelerate their efforts toward innovation.” Vice Minister Jang toured the production line for Kia's dedicated electric vehicle, the EV6.

Unlike the past, when companies from the U.S., Europe, and Japan led the era of internal combustion engine vehicles, Hyundai Motor Group is strongly determined to leap forward as a "Game Changer" and "First Mover" that will reshape the global EV market with overwhelming performance and value that surpasses competitors in the EV era.

Hyundai Motor Group has won two of the three major global car awards, including the World Car of the Year and the European Car of the Year. The World Car of the Year and the European Car of the Year, along with the North American Car, Truck and Utility Vehicle of the Year (NACTOY), hold the highest prestige.

Sales in global markets are also noteworthy. Hyundai Motor Group sold 252,719 units last year, entering the top 5 in global electric vehicle sales.

In the first quarter of this year, Hyundai Motor Group's electric vehicle sales reached 76,801 units, a 73% increase compared to 44,460 units in the same period last year. Domestic sales grew by 155% to 22,768 units, while overseas sales increased by 52% to 54,033 units.

Hyundai Motor Group aims to sell a total of 3.23 million electric vehicles by 2030, targeting a market share of approximately 12% in the global electric vehicle market.