Hyundai will reduce its combustion engine lineup and invest on electric vehicles

Cambodia Compass report, 28th May - To free up resources to invest in electric vehicles, Hyundai Motor Group will reduce the number of combustion engine models in its lineup (EVs). According to one of the persons, the move will result in a 50% drop in models powered by fossil fuels, and the policy was approved by high management in March.

"It's a significant business move that, first and foremost, frees up R&D resources to focus on the rest: electric motors, batteries, and fuel cells," the source added, without elaborating on the plan's timeline.

Hyundai did not mention its plans for combustion engine models, but it did say it was speeding up the adoption of environmentally friendly vehicles including hydrogen fuel cell vehicles and battery electric vehicles.

Hyundai also stated that in emerging regions, it will strive to increase the efficiency of its internal combustion engine car lineup. The carmaker also stated that it plans to gradually increase its battery electric vehicle offerings in important countries such as the United States, Europe, and China, with the objective of achieving full electrification by 2040.

Hyundai Motor Group, which includes Hyundai Motor Co, Kia Corp, and Genesis, expects to sell one million electric vehicles per year by 2025, achieving a 10% market share.

Faced with tighter CO2 emission requirements in Europe and China, all major automakers are speeding up their transition to electric vehicles. The high expense of creating electric motors and improving the range of automotive batteries has already prompted some to conclude that their days of investing in traditional engines are numbered.

One of the sources added, "Hyundai has halted developing new powertrains for internal combustion engine cars." PSA Group announced in November that it will no longer invest in combustion engines, soon before combining with Fiat Chrysler to form Stellantis.

Daimler's combustion engines were recently modified, and executives claim that the new generation will see the company through the electrification process.

Some automakers have already stated their intentions to go totally electric, with Volvo of Sweden, which is controlled by China's Geely, stating that it will do so by 2030.

Ford's European lineup will be totally electric by the same date, according to the company. The move is particularly essential for Hyundai, which, along with Kia, is one of the world's top 10 auto groups, because it boasts one of the industry's broadest ranges of engine and gearbox technologies.

According to one insider, the company will finalize its plan to move to all-electric vehicles over the next six months. Hyundai announced in April that it would reduce the number of gasoline vehicles it offers in China from 21 to 14 by 2025, while offering new electric models every year beginning in 2022.

The company announced in February that it was no longer in negotiations with Apple about developing an autonomous vehicle. According to sources acquainted with the situation, the concept of the company becoming an Apple contract manufacturer was met with substantial internal criticism.

Source: Cambodia Compass comprehensive arrangement

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