Hyundai Motor bets on green cars for growth

Hyundai Motor Group has pledged to bolster its green car business with a midterm goal of becoming one of the world’s top two carmakers in this segment by 2020.

“Under the midterm roadmap for the green car business, the group will achieve a full lineup of eco-friendly vehicles and increase the number of green car models to 22 from the current seven by 2020,” the carmaker said in a press release Wednesday.

“If the goal is achieved, the company will be able to advance to one of global top two green carmakers.’’

The announcement came in response to growing pressure to increase its investment in the eco-friendly car market where the Korean auto giant lags its global rivals.

Industry watchers have for some time predicted such a tactical move by Hyundai, given the expanding green car market.

According to market research firm IHS, the global eco-friendly car production is forecast to triple by 2020, reaching up to 6.4 million units in 2020 from 2.2 million units in 2014.

Hyundai Motor and it affiliate Kia Motors are poised to step up investment in hybrid cars to increase the number of such models to 12 from current four by 2020.

The automaker said it is placing priority on this segment as hybrid cars already account for 60 percent of the entire green car market.

In addition, the carmaker aims to enter the plug-in hybrid car market by debuting its first plug-in hybrid version of the well-selling Sonata next year. “We will roll out six models in this segment by 2020,’’ the carmaker said.

For hydrogen-powered fuel cell cars ― where Hyundai has an edge ― the Korean carmaker said it plans to develop next-generation fuel cell electric vehicles to bolster its global leadership. In 2013, the carmaker established the world’s first mass production line for fuel cell cars.

Global automakers have been increasingly betting on hydrogen fuel cell technology to help compensate for the slow sales of electric cars.

In the electric car segment, Hyundai said it would focus more on developing next-generation battery technology, rather than aiming to put more cars on the roads.

“The group is out to build its own green car legacy by boosting its competitiveness in related technology, price and fuel efficiency,” the company said.

By Seo Jee-yeon (jyseo@heraldcorp.com)