Euisun Chung, executive chairman of Hyundai Motor Group called for a renewed growth strategy in Brazil as the auto conglomerate seeks to strengthen its position in Latin America’s largest vehicle market.
Chung visited Hyundai Motor Co.’s manufacturing plant in Piracicaba, São Paulo, on Sunday during President Lee Jae-myung’s state visit to Brazil, where he reviewed the company’s production, sales and research operations and outlined plans to expand locally tailored eco-friendly vehicles and hydrogen-related businesses.
“Only by overcoming this crisis can we achieve the next stage of growth and make another leap forward,” Chung told employees at the Brazilian plant and its Latin America regional headquarters.
During the visit, Chung also toured the company’s Latin America Regional R&D Center, which has evolved from a regulatory certification facility into a hub for developing vehicles and powertrains tailored to Brazilian and Latin American markets. He later inspected production lines for the i20, which entered production in June, and the CRETA SUV.
The visit comes as Hyundai Motor faces intensifying competition from Chinese automakers in Brazil, the world’s sixth-largest automobile market with annual demand of roughly 2.5 million vehicles.
Brazil is also strategically important for the electric vehicle supply chain because of its abundant reserves of critical minerals, including rare earths and graphite.
Chinese manufacturers, led by BYD, have rapidly expanded their presence through aggressive pricing and local investment.
BYD, which acquired a former Ford manufacturing plant, climbed to fourth place in Brazil’s brand sales rankings during the first half of the year, overtaking Hyundai.
Brazil’s industrial policies have further increased the importance of local manufacturing. The country imposes a 35 percent tariff on imported vehicles, including electric models, while promoting domestic production through its Green Mobility and Innovation Program.
Hyundai Motor plans to expand its local SUV lineup, a key segment that already accounts for 43 percent of Brazil’s vehicle market and is expected to exceed 50 percent by 2030.
Hyundai Motor is also localizing its electrification strategy. In addition to evaluating local production of compact electric vehicles, the company is accelerating development of hybrid powertrains based on flexible-fuel vehicle (FFV) technology, designed to operate efficiently on Brazil’s widely used gasoline-ethanol fuel blend. The new hybrid system will debut in the SUV segment.
Beyond passenger vehicles, the automaker is positioning hydrogen as a long-term growth pillar. Working with affiliated companies, the company is building a broader hydrogen ecosystem spanning commercial vehicles, hydrogen-powered trams, green hydrogen production, fuel cell systems and renewable energy.
With Brazil actively promoting its hydrogen industry, Hyundai Motor plans to deepen collaboration with local businesses, universities and research institutions.
By Chu Dong-hun and Han Yubin
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]
