[News Article] Chung marks 4 years at helm of Hyundai Motor
Chung
marks 4 years at helm of Hyundai Motor By
Moon Joon-hyun, The Korea Herald - Hyundai Motor Group is celebrating four
years of Chung Euisun’s leadership as executive chair on Monday. During this
period, the automaker has experienced rapid growth, expanded into new markets
and positioned itself as a major player in electric vehicles and future
technologies. But new challenges lie ahead, particularly in software, robotics
and urban air mobility. When
Chung officially took over in 2020, Hyundai and its sister brand, Kia, were
solid players but not exactly leaders in the global automotive market. In just
a few years, the group has climbed to become the world’s third-largest
automaker by sales, overtaking giants like General Motors. By
the end of 2022, Hyundai-Kia had sold 7.3 million vehicles -- almost a million
more than in 2020 -- and they’ve held onto that third-place spot in 2023. With
5.39 million units sold in the first nine months of this year, they’re on track
to hit around 7 million vehicles again by year’s end, inching closer to
Volkswagen’s second-place position. Beyond
sales, Hyundai’s profitability has surged. Hyundai Motor’s operating profit
soared from 239 billion won ($177 million) in 2020 to 15.1 trillion in 2022,
while Kia’s profits jumped 2.7 trillion to 11.6 trillion won in the same
period. This year, the group’s revenue is forecast to hit 280 trillion won,
with operating profits of 29 trillion -- both all-time highs. With profit
margins above 10 percent, Hyundai-Kia has positioned itself alongside premium
brands. Hyundai
has transformed from a follower in traditional internal combustion engines to a
leader in EVs. A key step was the introduction of its dedicated E-GMP platform
in December 2020, which powers key models like the Ioniq 5 and Kia EV6. Even
during recent market slowdowns in EV demand, the Group balanced hybrid
production with EV development, keeping its long-term strategy intact. This
strategy has paid off. Hyundai-Kia is now the second-largest EV maker in the
US, surpassing General Motors and Ford. The group is set to expand further with
the opening of Hyundai Metaplant America in Georgia later this year, followed
by a new EV facility in Ulsan, South Korea in 2025. Hyundai’s
growing influence has also drawn the attention of governments worldwide. “Local
governments are eager to attract Hyundai plants, as they can drive significant
economic benefits,” a Korean industry insider noted. Despite
its success in electrification, Hyundai faces tough challenges in
software-defined vehicles and autonomous driving -- technologies increasingly
shaping the future of mobility. Unlike traditional cars, SDVs depend on
software updates and connectivity, and Hyundai is working hard to catch up with
leaders like Tesla. The
company has invested heavily in this area. It set up Motional, a joint venture
with Aptiv, to develop self-driving technology, and acquired Korean software
startup 42dot. This year, Hyundai committed 3 trillion won to Motional and
allocated 1 trillion to further develop SDV technology through 42dot. Motional
also plans to supply Ioniq 5 vehicles to Waymo, Google’s autonomous driving
unit, and Hyundai aims to roll out an SDV prototype by 2026. However, progress
has been slow, and Hyundai acknowledges it still trails behind Tesla and
Chinese automakers in this field. Hyundai
is betting big on robotics and UAM as part of its long-term vision. By 2030,
the Group aims to generate 50 percent of its revenue from cars, 30 percent from
UAM, and 20 percent from robotics. Chung’s
first major acquisition was Boston Dynamics, a US robotics company known for
its agile robots like Spot. However, the firm has struggled financially,
posting a 196.9 billion-won loss in the first half of 2023. In
UAM, Hyundai established Supernal to develop electric vertical takeoff and
landing aircraft, with plans to launch services in the US by 2028. Although
progress has been expensive -- Supernal reported a 52.6 billion won loss last
year -- Hyundai is taking a cautious, safety-first approach. “We’re
building to commercial aircraft safety standards from the start. The market
won’t open unless we meet these safety requirements,” said Shin Jae-won, head
of Hyundai’s Advanced Air Mobility division, at CES 2024 in January this year. Source:
https://www.koreaherald.com/view.php?ud=20241013050088
2024.10.15
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