April 23 (Asia Today) — Hyundai Motor Group is overhauling its China strategy, pivoting to electric vehicles in a bid to revive its presence in the world’s largest auto market.

The company plans to unveil its first mass-produced Ioniq model for China at Auto China 2026, marking a major shift toward electrification more than two decades after entering the market.

Hyundai said its Beijing joint venture will transition into a new energy vehicle brand, signaling a full departure from its traditional internal combustion engine lineup.

The move represents the most significant transformation since Hyundai established its 50-50 joint venture in China in 2002.

The automaker is seeking to replicate its earlier rapid growth, once dubbed “Hyundai Speed,” when it rose to become one of China’s top three carmakers alongside global rivals.

However, its position weakened sharply after the 2017 deployment of the U.S. missile defense system known as THAAD triggered economic retaliation from Beijing. Hyundai also lagged behind in adapting to China’s rapid shift toward electric and smart vehicles.

China’s auto market has since undergone a major transition, with new energy vehicles – including electric cars and plug-in hybrids – accounting for more than half of new vehicle sales last year.

Local manufacturers such as BYD and Geely have emerged as dominant players, while technology firms including Huawei have entered the sector with advanced software and autonomous driving systems.

To compete, Hyundai is emphasizing localization.

The company said it will incorporate autonomous driving technology developed by Chinese firm Momenta into its new models and build a broader “Ioniq ecosystem” that includes services and charging infrastructure tailored to local consumers.

Hyundai also plans to introduce extended-range electric vehicles, or EREVs, in China next year to address long-distance driving needs and charging limitations.

Industry analysts say policy shifts in China could benefit global automakers with strong technology and brand positioning.

Beijing’s latest five-year plan prioritizes intelligent connected vehicles over basic electric cars, while subsidy programs are increasingly tied to vehicle price, favoring higher-end models.

Hyundai said it aims to launch six new electric models in China by 2030 and reach annual sales of 500,000 units.

The company is also expanding partnerships in batteries and energy, holding talks earlier this year with major Chinese firms including CATL and Sinopec.

Analysts say Hyundai’s success will depend on how well it adapts to China’s evolving competition, which has shifted beyond electrification to a broader race in technology and ecosystem development.

— Reported by Asia Today; translated by UPI

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Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260423010007156