Hyundai continues to grow and plans new e-platforms

Hyundai is planning to move further ahead. In Munich, we met a satisfied managing director of Hyundai Germany, Jürgen Keller, who announced the 2022 figures and provided an outlook on the future: This indeed includes the Urban Air Project "Supernal" – a fuel cell-powered air taxi that is set to take off in 2028. And Keller confirms:

"When we announce something like this, we deliver it."

New Electric Platforms eS and eM

This also includes the first Ioniq 5 models converted to robotaxis in South Korea and the USA, and preparations for the introduction of a new generation of platforms for electric vehicles: The new electric platform eM for passenger cars of all sizes promises up to 50 percent more range, as well as advanced autonomous driving technologies, according to Keller. The second platform is named eS and is intended for electric special vehicles (PBV), including taxis, courier services, or special-purpose vehicles. Clearly, it remains exciting, and Hyundai is becoming more popular and valuable: According to a study by the agency Interbrand, Hyundai climbed to sixth place among car manufacturers and 35th among all brands in 2022. Ahead (in this order) are Toyota, Mercedes-Benz, Tesla, BMW, and Honda.

Hyundai will continue to drive the transformation towards electrified and sustainable mobility. Moreover, Hyundai achieved "another excellent result" in Germany, according to company figures: New registrations are around 105,000 units, corresponding to a market share of about 4.0 percent, maintaining the high level of 2021, when around 106,000 cars were sold, corresponding to a market share of about 4.1 percent. Specifically, in the German market, Hyundai achieved a market share of 4.0 percent with exactly 105,074 new car registrations in 2022, retaining its position as the number one Asian import brand ahead of Toyota and Kia; among all import brands, Hyundai reached third place behind two VW Group brands. In the specific German private customer market, the company saw a 28.1 percent increase in registrations to 49,448 units and a market share increase of 0.9 percentage points to 5.2 percent. This made Hyundai the fifth strongest brand for private registrations in Germany for the first time in 2022. What is not visible: Both the manufacturing margin and the trade margin of cars increased. Overall, 67 percent of all new registrations of the brand had an electrified drive. Wang Chul Shin, President and CEO of Hyundai Motor Deutschland GmbH, explains:

"We have maintained our position in a challenging market environment and are particularly strong where the future of mobility lies: in electric and electrified drives, in sustainability, and new mobility concepts."

He adds to the high goals:

"Hyundai is not only on the path towards climate neutrality but is also transforming from a car manufacturer into a provider of smart mobility solutions. In both areas, we have made tremendous progress over the past year."

Jürgen Keller, Managing Director of Hyundai Motor Germany, is also pleased:

"We achieved a new record result in the private customer market last year."

He also puts this into perspective with the overall market, which was rather very weak in 2022:

"While the private market was able to grow by only five percent overall, we increased our registration result by over 28 percent. Whether private or commercial customers: We score everywhere with our versatile model range and our state-of-the-art electrified drives."

Private and Fleet Business Becoming More Important and Stronger

The fleet business is also gaining more and more importance. In Germany, Hyundai recorded a 17.6 percent increase to 21,690 registrations; the market share in this segment improved to 2.5 percent. Contributing to this alongside the large range of alternative drives was also the further professionalization of the fleet business. The main pillar here is the so-called Fleet Business Centers (FBC), of which there are now 58 in Germany. Following qualification workshops for the Hyundai trade partners with FBC last year, an individual coaching program will follow in 2023. Hyundai is also strong in repairs with original parts: Due to the poor availability of new cars, there was massive growth here in 2021 and 2022, according to Keller. The "accessories" segment also grew, which in reality mainly includes complete wheels and tow bars. Here, according to Keller, they are "very strong." For the first six weeks of 2023, Hyundai dealers report a further increase in service and accessories. Clearly, Hyundai remains loyal to the trade and views it as a pillar of business.

And the trade, like Hyundai itself, is earning better. Keller knows the exact numbers but only provides margins and an indication: The trade, which usually has a return of 1.5 percent, was able to increase this to 2.0 percent in 2022, and the value of Hyundai models has almost doubled from 2014 to 2022, which also benefits the corporate margin. However, they clearly remain a volume manufacturer, but are indeed developing the brand upwards.

Ioniq 5 and Kona EV are among Germany's most popular electric cars

33,338 electric vehicles sold represent about a third of the brand's total sales. This corresponds to third place among all brands in the BEV segment behind Tesla and VW, with a market share of 7.1 percent. Thus, Hyundai remains one of the leading suppliers of fully and partially electric vehicles. Both the Ioniq 5 and the electric Kona have secured spots in the top 10 best-selling electric vehicles in Germany. Additionally, in 2022 the Kona Electric, directly followed by the Ioniq 5, was the best-selling BEV from an Asian manufacturer.

The Kona, which is coming new in 2023, was the most popular Hyundai model in Germany in 2022, with a total of 25,979 new registrations; 17,029 units of which were the purely electric version. The Tucson follows with 17,891 vehicles, and the Ioniq 5 with 14,080 units. Thus, the brand's success continues to rest on multiple pillars, which is also important to Keller. A brief question about the Nexo fuel cell model: It was sold 462 times in Germany in 2022.

From hybrids to fuel cells, Hyundai now offers nine model series with sustainable drives. Thanks to this wide portfolio, CO2 fleet emissions are at a pleasing 79 g/km, placing it fourth among all non-purely electric volume brands. Therefore, the brand can also afford more robust CO2 emitters like the N models.

Only electric cars in Europe by 2035

All Hyundai model series will have alternative drives starting from 2026, including mild hybrids. By 2035, Hyundai plans to offer only battery-electric vehicles and those with fuel cells in Europe, and by 2045, the entire company will operate globally climate-neutral.

A look back: Two million vehicles sold since 1991

With the conclusion of 2022, Hyundai has surpassed the mark of more than two million vehicles sold since it entered the market in 1991. Some of the first Hyundais already carry the H license plate. Unfortunately, according to spokesperson Bernhard Voss, the company has so far missed the opportunity to establish its own museum, like Mazda and Toyota have – something they may look to do in the future. It took 22 years to reach the first million – for the second million, Hyundai needed only nine years. The eternal bestsellers list is led by the Tucson together with the ix35 (as it was called in between), with more than 309,100 registrations. This is followed by the Hyundai i30 with 354,000 and the i10 with around 264,300 vehicles. In 2023, the brand plans to introduce the already orderable Ioniq 6 and the new Kona Electric, as well as the new N version of the Ioniq. The new Kona will also come again as a hybrid and internal combustion engine version, and a nine-seater variant will be added to the Staria. Additionally, there will be facelifts for the i10, i20, i30, Bayon, and Tucson. Keller is pleased:

“Almost all models will be addressed this year.”

Moreover, the company is focusing on further increasing the quality in sales and service areas and thereby improving customer satisfaction. In the new Hyundai Training Academy in Hösbach, Bavaria, which opened in November, up to 10,000 employees of Hyundai's contractual partners will be annually prepared for all requirements in service and sales areas related to the introduction of new technologies and mobility concepts.

The majority of models are “Made in Europe”

Globally, Hyundai Motor Group, which includes the core brand Hyundai as well as Kia and Genesis, sold 6.85 million vehicles (+ 3.3 %) last year, making it one of the world's top three car manufacturers. Hyundai Motor Company exceeded the previous year's result by 1.3 percent with 3.94 million vehicles – despite globally challenging conditions due to ongoing supply shortages. In Europe, Hyundai Motor recorded an increase of 0.5 percent to 518,566 vehicles, achieving a new record market share of 4.6 percent.

The share of fully and partially electric models also reached a new record level of 39.8 percent; roughly 16 percent of which were purely electric drives. More than two-thirds (70 %) of the vehicles sold in Europe are produced in the company's two European plants in the Czech Republic and Turkey. The new E-Kona also comes from the Czech Republic – though it is an exception to the rule: The internal combustion versions still come from Korea.

What does this mean?

Hyundai Motors continues to grow steadily in Germany (and worldwide) – now not so much in absolute unit numbers or market share, but rather in margin – both in cars and in retail. And since it has several top sellers and satisfied dealers – along with suitable models – the brand is likely to remain very strong in 2023 as well.