In 2019, Hyundai motor released Paristi, which is currently the largest SUV under Hyundai Motor. Launched for the U.S. market, it was later launched in South Korea. Recently, the mid-term redesign of Paristi was released, and the exterior and interior have been improved to a certain extent. But the powertrain hasn't changed. Many consumers expect the hybrid not to add. Considering the upcoming era of electric vehicles, the Parristi of the internal combustion engine is likely to disappear after this generation.
Hyundai motor held a CEO Investor Day in March and announced a detailed strategy for its medium- and long-term electrification goals. Detailed disclosure of target market share and sales lineup targets for each market. Last year, electric vehicles accounted for only 4% of total sales of Hyundai and Genesis, which is a very low level. Hyundai plans to increase this figure to 17 percent in 2026 and 36 percent by 2030. In order to increase the proportion of electric vehicle sales, it is absolutely necessary to have a recent hot electric SUV lineup to maximize the advantages of electric vehicles. Currently, the modern Ioniq 5 is far from a traditional SUV. Due to the low ground clearance, there are obvious restrictions on driving on rough roads. Since it's a five-seater model without a third row, it's closer to the CUV than the SUV.
It is important to respond in the United States, where the electric vehicle market is growing rapidly. Hyundai aims to sell 530,000 electric vehicles in the U.S. market by 2030. It plans to achieve an EV market share of 11%. If so, it would be most effective to sell electric vehicles in the most popular segment of the United States. If the electric powertrain is applied to large SUVs and pickups based on the Ioniq 5 currently on sale, this may be a difficult goal to achieve. Production of electric vehicles in the United States will also begin. Hyundai motor company will expand its Alabama plant and start production of the GV70 electric model by the end of this year. This is hyundai motor group's first electric car produced in the United States.
Hyundai Motor Corp.'s Ioniq 7 concept car, launched last year, is most likely a large electric SUV. There are currently no detailed specifications or camouflaged vehicles. Hyundai Motor Company is accelerating its research and development, with the goal of launching in 2024. Some industry experts suggest that the Ioniq 7 concept car has the potential to replace the current internal combustion engine, Paristi.
The only information disclosed was the wheelbase length and whether it had a third row. When Hyundai first unveiled the Ioniq 7 concept at the Los Angeles Auto Show last November, Hyundai mentioned the specific number of 3200mm wheelbase. Considering that the current wheelbase of Paristi is 2900mm, the possibility of Ioniq 7 becoming the second generation of Paristi seems to be higher. Judging from the unveiled concept car, it also has three rows of seats. Based on the long wheelbase, the third row of knee space is also expected to be sufficient.
Rendering of the IONIQ brand lineup (from left to right: IONIQ 6, IONIQ 7, IONIQ 5)
By 2030, Hyundai Motor plans to launch six SUV models, three sedans, one small commercial vehicle, and one new other electric vehicle. Starting with the Ioniq 5 released last year, the sedan Ioniq 6 in the second half of this year, the new Kona electric car scheduled for next year, and the Ioniq 7 scheduled for 2024. After that, new models will be developed according to market conditions.
Hyundai's pure electric platform E-GMP
To strengthen the lineup, we are driving the development of the platform. Hyundai Motor Group's pure electric vehicle platform E-GMP has received positive reviews. It has a structure that can use ultra-fast charging in the 350kW class and features a wheelbase longer than the full length. Because of this, the biggest attraction is that it can use a high-capacity battery compared to the size of the vehicle. Hyundai revealed the new platform to further broaden the scope of application of this segment. The biggest goal is to increase mileage by more than 50% compared to IONIQ 5.
Hyundai Motor's operating profit in the first quarter of this year was close to 2 trillion won, up 16% year-on-year. Hyundai's internal analysis is that it mainly sells high-profit models with profits of more than 30 million won. Conversely, since electric vehicles account for only 4% of sales, profit margins may be good.
With the increase in the proportion of electric vehicle sales, it is not easy to maintain a high operating profit. Since the prices of various raw materials and batteries have risen, most manufacturers are raising the price of electric vehicles. If prices rise further, it will be difficult for consumers to choose electric vehicles. Unpopular segments should abandon electrification in favor of mass-market-focused electrification. Cars such as Sonata and Shengda, while steeped in history, are not popular. In the rapidly changing market situation, how modern cars transform, there is no answer.