Hyundai's new CEO confident 'quality' can tame China threat

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Hyundai's new CEO confident 'quality' can tame China threat

Published: 25 Nov. 2024, 17:46 Updated: 25 Nov. 2024, 21:03

SARAH CHEA
[email protected]

Audio report: written by reporters, read by AI

José Muñoz, the newly named CEO of Hyundai Motor, speaks during an interview with the Korean press at the LA Auto Show in California on Nov. 21. [HYUNDAI MOTOR]

While global automakers are flinching over U.S. President-elect Donald Trump’s threats to dismantle incentive packages for EVs, Hyundai Motor is prepared for all scenarios with its “flexible production scheme,” according to its newly named CEO.

“Hyundai did not build our [U.S.] investment plan based on incentives; the plan was even made before in Trump’s [first] term,” said José Muñoz, current global chief operating officer at the world’s third-largest automaker, during an interview with the Korean press at the LA Auto Show in California on Nov. 21.

“If the Inflation Reduction Act [IRA] goes out, it goes out for everybody, and we can even do better [if it does],” Muñoz added. “At the moment, the IRA is for some competitors but not for Hyundai, but we’ve been growing.”

“Competitors like Tesla step by step are losing market share and we continue to increase our share."

Jose Munoz, the newly named CEO of Hyundai Motor, introduces Ioniq 9 at the LA Auto Show in California on Nov. 21. [HYUNDAI MOTOR]

The remarks by the incoming CEO, Hyundai’s first-ever foreign chief, come as Trump is reportedly attempting to repeal the IRA, which offers up to $7,500 in tax credits to EV buyers in the United States. In order for its vehicles to qualify, Hyundai accelerated work on its EV plant in Georgia, an investment of $5.5 billion that started production last month, around six months ahead of the initial schedule.

“We will not only produce EVs but also hybrids and extended-range EVs at our plants, and therefore the key for us is flexibility and then being able to adjust to what the customers want.”

Hyundai Motor Group, which includes Genesis and Kia, claimed 10 percent of the U.S. EV market through July this year, outpacing Ford Motor, which got a 7.4 percent share, and General Motors at 6.3 percent, according to a report from market tracker Motor Intelligence.

The Korean group is second only to Tesla, whose share plunged to 49.7 percent during the same period from 70 percent in 2022 and 60 percent in 2023.

Muñoz also said “China is a big threat” to the global auto industry, but Hyundai can put up a challenge in the cutthroat industry with enhanced “technological prowess” and “quality.”

“A lot of consumers, when they buy Chinese products, they realize maybe the quality is not as good as others. They are not happy with the quality, maybe [there is] a mechanical issue or [a problem] with the maintenance,” he said.

“It is the moment to elevate our game in terms of providing not only the best quality but also the best services to our customers. We have been able to attract the best dealers in different countries investing with us and then investing in facilities with equipment and training to provide better service."

Hyundai aims to release a total of 21 EVs and 14 hybrid models by 2030. It set a sales target of 5.55 million units during the same period, 2 million of which are to be EVs.

BY SARAH CHEA [[email protected]]