Hyundai’s Chung to nurture Czech plant as hub for eco-friendly mobility

Hyundai Motor Chairman Chung Euisun (center, front line) visits Hyundai Motor Manufacturing Czech (HMMC)

Hyundai Motor Co. Executive Chairman Chung Euisun has vowed to turn the South Korean automotive conglomerate’s plant in the Czech Republic into the European hub for eco-friendly vehicle production.

During his visit to Hyundai Motor Manufacturing Czech (HMMC) in Nošovice, Ostrava last week, he also vowed to spare no efforts to turn the Czech facility into the center for Hyundai’s electrification push in Europe through aggressive investments.

“The Czech plant is the key European hub for our future investment in eco-friendly mobility and technology. It plays a crucial role in Hyundai’s continued growth and success amid the market uncertainty,” he said. “We are committed to active investment and support here to improve vehicle quality and safety.”

HMMC is Hyundai Motor Group’s only electric vehicle production plant in Europe. The plant is in the middle of transforming into a smart factory to lead the Korean automaker’s electrification push across Europe.

Established in November 2008, HMMC has an annual production capacity of 300,000 vehicles.

Hyundai’s GV70 Genesis

Currently, Hyundai produces the Kona Electric, the Tucson Hybrid and the Tucson Plug-in Hybrid at the plant.

Company officials said Chung toured the Czech plant, assessed the current European market situation with local executives and explored future growth strategies in Europe.

His visit to HMMC comes as global automakers are striving to cope with a fast slowdown in EV adoption, called the EV chasm.

According to the European Automobile Manufacturers Association (ACEA), the EV demand in Europe for the first seven months of the year stood at 1.09 million units, up a mere 0.6% rise from the year-earlier period.

The latest figure compares with a 28.2% rise in EV demand seen in 2023.

HYUNDAI TO DIVERSIFY EV LINEUP TO COUNTER DOWNTREND

Hyundai plans to address the slowing EV demand in Europe, the world’s top eco-friendly vehicle market, by offering an increased EV lineup in addition to the popular Tucson Hybrid.

Hyundai Motor Chairman Chung Euisun (center, front line) at Hyundai Motor Manufacturing Czech

The Korean automaker plans to bring more IONIQ 5 electric crossovers to Europe from Korea and unveil the Inster, its latest all-electric crossover city car in the region later this month.

Showcased at a Korean motor show in July, the Hyundai Inster is an A-segment subcompact urban EV that builds on the design legacy of the gasoline-powered Casper launched in 2021.

The Inster is called the Casper Electric in Korea.

Hyundai expects the Inster to play a key role, alongside the Kona Electric, in strengthening the company’s position in the European market.

KIA’S MOVE IN EUROPE

Hyundai’s sister firm Kia Corp. is also stepping up efforts to enhance its presence in the European EV market.

Hyundai Motor Chairman Chung Euisun (center, front line) pose for a photo with Hyundai Motor Manufacturing Czech (HMMC) employees

Kia is building its EV manufacturing system at its Slovakia-based plant to start operations in the second half of 2025.

The company plans to bring a refined version of the EV6 and add an affordable trim of the larger EV9 to Europe.

It is also set to launch the EV3, a budget electric model, in Europe later this year – marking the model’s global debut outside of Korea.

Kia, which is leading Hyundai Motor Group’s purpose-built vehicle (PBV) project, also aims to strengthen its position in Europe’s light commercial vehicle (LCV) market.

In mid-September, it showcased its PBS concept, including the PV5, at an international auto show in Hannover, Germany.

Hyundai Motor Group is also working to expand facilities at Hyundai Europe Technical Center GmbH to develop premium and high-performance models.

Meanwhile, HMMC recently donated 10 million koruna ($446,000) to People in Need, a Czech nonprofit, non-governmental organization, to help people affected by Storm Boris in the Moravian-Silesian region near its plant.

By Jin-Won Kim

jin1@hankyung.com

In-Soo Nam edited this article.

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