- Hyundai Motor Group plans to reduce production of regular combustion engine models
- Automakers have been accelerating shift to EVs due to stricter CO2 norms in Europe and China
Hyundai Motor Group, which houses Hyundai Motor Company and Kia Corp and Genesis, is aiming to sell one million EVs per year by 2025. The company has plans to achieve a 10 per cent share of the global EV market. The Hyundai Motor Group has also announced its plans to reduce the production of regular combustion engine models from its line-up to free the resources to invest in electric vehicles (EVs) development. It is believed that the decision will result in a 50 per cent reduction in models powered by fossil fuels.
This decision will allow the release of research and development resources to focus on other areas, such as – development of electric motors, batteries, fuel cells, and more. All major automakers have been accelerating their shift to EVs due to tighter CO2 emission targets in Europe and China. The company will gradually expand battery EV offerings in key markets such as the United States, Europe, and China with full electrification plans by 2040.
It is believed that the heavy cost involved behind the development of electric motor and the focus behind increasing driving range has led to car manufacturers not choosing to invest more in the development of conventional engines. The Hyundai Motor Group will finalise its strategy to switch to all-electric models within the next six months.
Source: Reuters
