According to a report by Reuters, sister companies Hyundai Motors and Kia Motors have recently announced that they will be slashing half of their Internal Combustion Engines (ICE) from their vehicle lineup. This was done to free up resources so that Hyundai can invest in electric vehicles. The report also further states that this move to reduce ICEs from their lineup was already approved by upper management in march of this year.
With electric vehicles slowly becoming more popular, allocating resources to their development could be a wise move for both companies. Both Hyundai and Kia will need to do a lot of catching up especially when it comes to research and development of battery and fuel cell technology.
Hyundai already has been taking steps into the electric vehicle market as it has released electric versions of its popular models such as the Hyundai Ioniq and Hyundai Kona. On top of this, the South Korean automaker also has its own EV sub-brand called Ioniq that is looking to launch more electric vehicles soon in the form of a sedan and an SUV.
The South Korean automaker has also announced plans on becoming a smart mobility solution in its home country. Its plan will consist of two pillars, the first of which being smart mobility devices and the second being smart mobility services. To achieve this the automaker is looking to target younger demographics with more affordable EVs. This goes in line with the company’s goal of selling 670,000 EVs annually which consist of 560,000 battery electric vehicles and 110,000 fuel cell vehicles by 2025. The company has also stated plans that it will be expanding its electric vehicle lineup globally as well with certain EV models going to be introduced to key markets in the US, Europe, and China. By 2040 it is reported that Hyundai will fully transition into an electric vehicle company.