Hyundai and affiliate Kia unveiled plans on Wednesday to become the world’s second biggest manufacturer of environmentally friendly cars by 2020.
The automakers announced the plan to assuage concerns among foreign investors about its future after their purchase of a colossally expensive piece of prime real estate in southern Seoul for their new headquarters.
The gist of the plan is to expand Hyundai and Kia’s current lineup of seven hybrid, electric and hydrogen-fuel-cell-powered cars to 22.
Hybrid cars will make up the bulk of their initiative to take on Toyota, the world’s leading manufacturer of hybrids.
The carmakers say they will unveil 14 new hybrids, one hydrogen fuel cell model and one electric model by 2020. They have already developed a hybrid model similar to the Toyota Prius that is undergoing final tests in the US with the view to a release next year.
It features an entirely different design with extensive use of high-tech materials that lightens vehicles considerably, they said.
The hybrid lineup will expand to include compacts, compact sedans and SUVs as Hyundai is widely expected to roll out hybrid versions of the Accent and Tucson within four to five years. It will also produce six plug-in hybrid models beginning with the Sonata mid-sized sedan next year.
Hydrogen fuel vehicles will expand from the existing Tucson to another model.
A Hyundai source said, “The company will focus its energy on the hybrid market because it’s thought to have greater potential than the electric vehicle market where you have to build recharging stations and other infrastructure.”
Global competition in the environmentally friendly automobile market is expected to intensify. Toyota, the No. 1 player, accounted for 68 percent of some 1.74 million green cars sold last year. Its hybrid sales have reached seven million units as of September since it first introduced the Prius back in 1997, setting a milestone in automotive history.
Toyota has been investing three to four percent of total revenues in R&D to develop green car technology.
Another stronghold is Volkswagen. The German automaker has been aggressive in developing new green cars. Even its luxury sports car brand, Lamborghini, unveiled a plug-in model at the Paris Motor Show last month.
Volkswagen CEO Martin Winterkorn vowed to invest 1 billion euros every year into developing environmentally friendly cars.
Renault Nissan has also set its sights on producing 1.5 million electric vehicles by 2020, while Peugeot Citroen has announced plans to roll out by 2020 a green car that can travel 50 km on a liter of gasoline.
