In 2005, Lee Ki-Sang began to lead Hyundai's eco-friendly automotive transmission systems division, when Toyota Motors had been working on hybrid vehicles for eight years. Due to the lack of experienced engineers in Korea, Hyundai Motor took two years to form a decent team. Until 2010, Hyundai Motor released its own gasoline-electric drive system Sonata Hybrid.
Now, Hyundai and Kia are struggling to catch up with the meteors. Hyundai-Kia's plan is this: 26 hybrid-electric, plug-in hybrid, electric, fuel cell vehicles will be launched by 2020. Once the goal is achieved, Lee Ki-Sang believes the company can become the second-largest player in the electric vehicle field, surpassing Toyota.
For many years, Hyundai-Kia has fallen behind on the electrification road. If the electric trend is not used well, Hyundai and Kia will not be able to meet future emission requirements. Both Hyundai and Kia rely on production, and they all face the same challenge in order to meet emission standards: they must bet on unconfirmed next-generation transmission systems, must cater to the tastes of different consumers in the United States, China, and Europe, and reach regulatory agencies. Claim. Once the bet is wrong, the company will fall into a dead end.
It's really tough
In the Korean domestic market, Hyundai Kia dominates, but the Korean market is not big enough and sales are limited. GM relies on the United States and Volkswagen relies on Europe, both of which are large enough to exploit key economies to develop key new components.
“I have to be prepared for all kinds of possibilities,†Lee Ki-Sang said at the electric car show. “The problem is a headache, but we have to accept it. It’s really hard for us.â€
Among the upcoming 26 models, there are 12 hybrid electric vehicles, 6 plug-in hybrid vehicles, 2 electric vehicles and 2 fuel cell vehicles, which run through the Hyundai and Kia product lines.
Among the cars introduced, some use the names of cars that are currently being sold, and some are new. Modern aspects include the Sonata Hybrid, the Sonata plug-in hybrid, the Ioniq Hybrid, the Ioniq plug-in hybrid, the Grandeur hybrid, and the Tucson fuel cell version. In the United States, Grandeur sells under the Azera brand. The Kia side includes the OpTIma Hybrid, the OpTIma plug-in hybrid, the Soul electric car, the Cadenza hybrid car, and the upcoming Niro Hybrid compact crossover SUV.
"These cars will be our foundation," Lee Ki-Sang said.
The biggest problem is the timetable for electrification. On the one hand, green cars have become the trend, on the other hand, because of the extremely low oil prices, trucks are heating up. In February, truck sales accounted for 59% of total US car sales, but it only accounted for 29% of Hyundai Kia. Dealers remain skeptical about this trend.
When talking about oil prices, Lee Ki-Sang said: "I am also worried." He also said that although the penetration rate of environmentally-friendly cars is "very tragic," the group "has no choice" and only meets difficulties. Among Hyundai and Kia brands, electric vehicles account for only 1% of global sales.
Low sales
Although Hyundai’s goal is to become the second-largest electric car dealer within four years, the company has no specific sales targets. Lee Ki-Sang said that to achieve the goal, sales must be increased by four times, which means that by 2020, sales will reach at least 300,000 units.
Last year, Hyundai sold 42,900 hybrid electric and plug-in hybrid vehicles. It also sold 300 fuel cell vehicles, but not one electric car. Kia sold 18,735 hybrid electric vehicles. It has no plug-in hybrid and fuel cell vehicles. Soul electric cars sold only 8,450 units.
In contrast, Toyota sold 1.2 million hybrid electric and plug-in hybrid vehicles in 2015.
Analysts believe that modern goals are only "symbolic." Karl Brauer, senior director of Kelley Blue Book, said: "It is really not important to be the second. The really important thing is to launch an electric car that can run in the real world as soon as possible. Hyundai-Kia must establish a cost-effective supply for batteries and engines. Chain, it has to come up with a new car design that can be easily embedded in the car's transmission system."
Letting Hyundai and Kia Motors share components is a key point. After studying the needs of users, the modern team believes that only a small amount of change is needed to cover all environmentally-friendly car needs.
“For example, all electric car engines have the same diameter.†Lee Ki-Sang said, “The power output is different, but the width of the core coil can be adjusted. The engine controller is the same, we can use the same printed circuit board. Standardize it."
What is the end result? Lee Ki-Sang said that if the car of each car name can buy 20,000 cars - the more moderate data, the sales volume exceeds 100,000 from the component point of view. He also said: "In addition to Toyota, we can only better compete with other companies."
So far, modern green cars have not yet made a profit, but Lee Ki-Sang hopes to change that. He said: "Our goal is to make eco-cars profitable by 2020."
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