In the US, the media has been reporting extensively on how OEMs are struggling with the arrival of the BEV chasm.

In fact, Western OEMs such as GM, Ford and M-Benz have changed their front-loaded stance on BEVs until last year, and have successively revealed their strategy to promote HEVs and downsized GE vehicles together with BEVs for the time being. While the industry trend is backing away from BEVs, Hyundai Motor is launching a strong marketing campaign in the US in May 2024 to push BEVs to the forefront, as if this is the right time to do so.

This is not the only case of this BEV promotion: in May 2024, Hyundai Motor Company put additional funds into Motional, a joint venture with Aptiv that is developing self-driving technology, for example for unmanned taxis. This is a reversal of the prevailing opinion in the automotive industry that there is a long way to go in the practical and commercialisation of fully automated driving technology, and several OEMs have withdrawn from the market. Behind this is likely to be a thirst to take the initiative.

In the past, Hyundai Motor has followed new innovations (e.g. HEV, connected, etc.) introduced by Western and Japanese OEMs as second best, and has gained users by realising similar functions at lower prices. However, it is thought that this will not lead to significant growth as they will not be able to take the lead for any length of time.

Hyundai Motor Group’s current business policy is to be a game changer in creating new value in mobility, and both BEVs and fully automated driving have the potential to be game changers, and the measures taken in line with the business policy have only gone against the grain. We will keep you informed in a timely manner of developments at the Hyundai Motor Group and their potential impact on the Japanese automobile industry.