Hyundai to develop compact battery powered cars in 2014

Korean automakers have set out to develop midsized electric vehicles in a government project to roll out cheaper, eco-friendly and better-performing cars in 2014.

A consortium led by Hyundai Motor Co., the country’s top car manufacturer, has signed a deal with the Ministry of Knowledge Economy to establish production lines by 2014, moving up the due date by three years, the ministry said Wednesday.

The ministry said it plans to fund 70 billion won ($64.8 million) over the coming three years for the initiative, and Hyundai and its 43 partners will inject at least 30 billion won collectively.

Participants include large companies such as SK Innovation, LG Chem and Hyundai Mobis; small- and mid-sized firms such as C&S Technology and Wise Automotive; and research institutes and universities such as Korea Electronics Technology Institute, Seoul National University, KAIST and Sungkyunkwan University.

“The project will serve as the cornerstone for Korea to become one of the world’s four auto giants and one of the top three manufacturers of green cars,” the ministry said in a statement.

The project is aimed at spearheading the fledgling industry by localizing related technology and all parts ranging from motor and batteries to power converters and charging stations.

It is also part of the “Green Car Development Plan” the government unveiled in October.

Under the plan, the ministry wants to improve poor performance and affordability, which experts have pointed to as problems with local electric vehicles.

If successful the project would deliver a better product than the LEAF by Japan’s Nissan, the ministry added.

Last year, Hyundai developed the country’s first compact electric vehicle, the BlueOn. It can run up to 140 kilometers per charge, but falls short of the LEAF’s 160 kilometers and the Chevrolet Volt’s 610 kilometers.

Hyundai and its affiliate Kia Motors Corp. have introduced other products such as the Elec-City and i10 as well. Kia is expected to reveal a new compact utility vehicle by the end of the year.

Starting 2020, the country plans to churn out about 1 million electric vehicles a year, 700,000 of which for exports, generating 40 trillion won in sales.

By Shin Hyon-hee (heeshin@heraldcorp.com)