Hyundai Motor (005380.KS) is strengthening its position in the European electric vehicle market by raising this year's EV sales target nearly 30% from last year. In India, the world's third-largest automobile market, the automaker will debut a compact sport utility vehicle to accelerate market share gains.
Industry sources confirmed on Monday that Hyundai Motor has internally shared plans for sales targets and new vehicle launches across major regions this year.
Hyundai set its European EV sales target for this year at 143,130 units, a 27.5% increase from last year. The company's overall European sales target combining EVs and internal combustion engine vehicles stands at 603,000 units, roughly the same level as last year. The goal is to rapidly increase the EV share within its total vehicle portfolio. The EV share of this year's European sales target is projected at 22%, more than 10 percentage points higher than last year.
To boost EV sales in Europe, Hyundai plans to reorganize its local production lineup. Specifically, the company's Türkiye plant will begin producing the Ioniq 3, a compact EV under the Ioniq brand, as early as the second half of this year. Production volume is being discussed at around 28,000 units, representing approximately 15% of total output from the Türkiye plant.
Hyundai set its India sales target for this year at 592,450 units, a 3.1% increase from last year. Although local automobile demand is expected to contract by 0.1% this year, the company aims to expand its market share through aggressive sales efforts. India, behind China and the United States, is the world's third-largest automobile market and is widely regarded as having significant growth potential.
To achieve this, Hyundai is reviewing plans to begin mass production of the Bayon, a compact SUV, at its local plant around the end of this year. Production volume is reported at around 10,000 units. Hyundai gained attention in India's SUV market when it launched the urban SUV Creta in 2015 in the sedan-dominated Indian market. The company now seeks to diversify its SUV lineup to boost market share.
In the Middle East and Africa market, Hyundai plans to increase sales by 2.4% year-on-year to 324,750 units. By country, Saudi Arabia leads with 145,400 units, followed by South Africa at 36,800 units and Israel at 23,500 units.
To expand Middle East production, Hyundai plans to begin operations at a completely knocked-down (CKD) assembly plant under construction in Saudi Arabia by the end of this year. The Saudi plant is reported to produce the Verna sedan model. However, uncertainties in the Middle East region have grown to unprecedented levels due to the repercussions of the U.S.-Iran conflict, potentially disrupting these plans.
In the United States, Hyundai's largest export market, the company is reviewing plans to shift domestic production volume to local facilities to reduce tariff risks. The transfer of approximately 200,000 Tucson Hybrid and Palisade units previously exported from Korea to North America to U.S. plants is being discussed. As EV demand softens and hybrid vehicle demand rises in the U.S. market, Hyundai has been ramping up hybrid vehicle production.
Domestically, Hyundai plans to expand its SUV lineup. The GV80 Hybrid, the first hybrid model under the Genesis brand, is scheduled for mass production in August, and the new Tucson Hybrid model is set for September. A facelifted Santa Fe model is also reported to enter production around November.