Hyundai, facing a decline in sales of its purely electric cars in the first quarter of 2024, has announced a strategic shift towards hybrid vehicles. The company plans to leverage its electric car plant in Georgia, USA, to produce hybrids, aiming to capitalize on the growing demand for hybrid cars globally.
“We are investing in facilities to produce hybrid cars at the Hyundai Motor Group Metaplant America,” stated Hyundai Motor Chief Financial Officer Lee Seung Jo during an earnings conference call. The production facility is scheduled to commence operations in the fourth quarter of this year. However, the exact amount of investment and potential impact on the factory’s opening schedule remain unclear.
Hyundai has not disclosed the specific number of hybrids it plans to produce in Georgia. The company has set a goal to increase global sales of hybrid electric cars by 28 percent this year, targeting approximately 480,000 units.
Furthermore, Hyundai aims “to develop a system to apply hybrid (trims) to all models,” according to a report by KED Global. However, details regarding this plan are scarce. Hyundai has confirmed that it will continue to introduce new Ioniq models alongside expanding its hybrid offerings.
The decision to focus on hybrids comes amidst a backdrop of low global demand for electric cars. Even Tesla, a leader in the electric vehicle market, faced challenges in the first quarter of the year. Hyundai anticipates ongoing difficulties due to “competition among automakers” and “global macroeconomic uncertainty.”
In contrast, global sales of hybrid cars have surged by 17 percent, as reported by Reuters. This trend has influenced Hyundai’s new strategy.
“While we are currently seeing growing hybrid car demand, Hyundai needs to carefully factor in how long this trend would last and its competitiveness against rivals such as Toyota,” remarked Shin Yoon chul, an analyst at Kiwoom Securities.