“For those who remember when Hyundai Motor Group (005380) first entered the U.S. auto market, their growth to this day is astounding,” said William Barnett, a professor at Stanford University, during an interview with CNBC on the 25th (local time). He praised Hyundai Motor Group’s rapid growth.
Through a 15-minute broadcast report, CNBC focused on how Hyundai Motor Group, once harshly criticized as a “refrigerator on wheels,” became one of the global top three automakers. In the report’s introduction titled “How did Hyundai Motor Group become the third largest car company in the world?” CNBC introduced, “Hyundai Motor Group is closing the gap with leading electric vehicle companies, including Tesla, in the electric vehicle market,” and “it continues to invest in areas that other competitors are giving up, such as robotics, autonomous driving, and future air mobility.”
CNBC analyzed Hyundai Motor Group’s competitiveness, dividing it into four chapters: △Strong Competitors, △Difficult Past, △Innovative Changes, and △Future Outlook and Challenges.
The first chapter, “Strong Competitor,” mentioned that Hyundai Motor Group is doing well in electric vehicle (EV) sales in the U.S., even in difficult situations where it cannot fully receive subsidy benefits. In January, Hyundai Motor Group ranked fourth in the U.S. electric vehicle market, following General Motors (GM), Toyota, and Ford.
CNBC analyzed that Hyundai Motor Group’s electric vehicles have high-level EV technology and are leading the market through innovative technology such as the E-GMP-based ultra-fast charging system.
Sam Abuelsamid, an analyst at Guidehouse Insights, said, “Hyundai Motor Group’s EV is recognized as the leading vehicle,” and “E-GMP-based electric automobiles and future models to be launched are also recognized for their product competitiveness in the market.”
Ed Kim, a senior analyst at automotive market research firm AutoPacific, also evaluated, “Hyundai’s Ioniq 5 is perceived as a superior product compared to Toyota’s equivalent model, the bZ4X, by general standards.”
In the second chapter, “Difficult Past,” it was introduced that in 1986, Hyundai Motor started its challenge as a car manufacturer selling finished cars in the U.S. through Excel, a successor model of Pony designed by Giorgetto Giugiaro. It was then mentioned that it quickly grew in the U.S. by achieving synergy based on the credibility of the Asian brands built by Toyota. However, in 1998, Hyundai Motor faced difficulties as it was criticized for not having the same quality as Japanese brands. Still, it was evaluated that it has gained its current competitiveness through many efforts to improve quality.
The third chapter, “Innovative Changes,” emphasized the efforts that allowed Hyundai Motor Group to become a global top 3 automaker. Hyundai Motor Group executed a “fast follower” strategy, borrowing the best practices of Japanese competitors such as Toyota and Honda, which had entered the U.S. market earlier. Through proactive efforts to regain quality reliability, it reached a level comparable to competitors from the 2000s.
Professor Lee Moo Won of Yonsei University said, “The quality level of Hyundai Motor Group in the early 2000s has risen to a level similar to that of the U.S. Big 3 and Japanese automakers.” Ed Kim emphasized, “Hyundai Motor Group’s sincerity about quality has been conveyed to consumers through a radical warranty policy, and it is no longer a manufacturer that makes cheap cars.”
The last chapter, “Future Outlook and Challenges,” pointed out that Hyundai Motor Group faces various difficulties in the U.S. market, such as recalls and vehicle theft. However, it was evaluated that Hyundai Motor Group is receiving continuous praise for improved vehicle quality and is actively responding to the issue of vehicle theft.
It was positively evaluated that it has shown innovative models such as Nexo, N Vision 74, etc., by continuously developing hydrogen fuel cell technology. It is constantly challenging and innovative in autonomous driving and online vehicle sales. CNBC mentioned that through this, Hyundai Motor Group is quickly responding to changes and pioneering the market as a leader in the automotive industry.
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