Hyundai Motor Group will slash the number of combustion engine models in its line-up. This is to free up resources to invest in electric vehicles (EVs). This move will result in a 50% reduction in models powered by fossil fuels, adding the strategy was approved by top management in March.
This was reported to the reuters by two persons who were close to the South Korean automaker. But the person didn’t give any time frame for the plan and said that it is an important business move, which first and foremost allows the release of R&D resources to focus on the rest such as the electric motors, batteries and fuel cells. But Hyundai did not specifically address a Reuters query on its plans for combustion engine models.
In a mail Hyundai said that it was accelerating adoption of eco-friendly vehicles such as hydrogen fuel cell vehicles and battery EVs. The company also added that it aims to gradually expand battery EV offerings in key markets in a way similar to the United States, Europe and China. They also have a goal for full electrification by 2040. To achieve a 10% share of the global EV market, Hyundai Motor Group, which houses Hyundai Motor Co and Kia Corp and Genesis, aims to sell about one million EVs per year by 2025.
All major automakers are accelerating their shift to EVs. This is because they are facing tightening CO2 emission targets in Europe and China. This person also said that Hyundai has stopped developing new powertrains for internal combustion engine cars. PSA Group said in November that it was no longer investing in combustion engines. Daimler has recently revamped its combustion engines and so the executives say the new generation will see it through the electrification process.
Some car makers are already in the plan to go fully electric, with Sweden’s Volvo, Ford Motor Co etc. For Hyundai, which together with Kia is one of the world’s top ten auto groups, the move is particularly important. This is because it has one of the broadest ranges of engine and transmission technologies in the industry. In April, Hyundai said it would cut the number of its gasoline models in China to 14 from 21 by 2025, while launching new electric models every year starting in 2022. Within next six months the group will finalise about their strategy to switch all models to electric.
