Hyundai Motor Co., the leading automaker in South Korea, is taking strategic steps to strengthen its position in the competitive market of hydrogen-powered vehicles. The company has announced plans to transform its commercial vehicle plant in Jeonju, North Jeolla Province, into a manufacturing hub for hydrogen fuel cell electric vehicles (FCEVs). This move comes in response to the heightened competition from vehicle imports originating from China and Europe.
The President and Head of Hyundai’s domestic production division, Lee Dong-seock, shared this plan with the company’s union leaders. Currently, the Jeonju plant operates at a factory operating rate of approximately 40%. By focusing on the production of hydrogen-powered buses and trucks, Hyundai aims to increase the plant’s capacity utilization. In 2020, the factory produced only 39,934 units out of its annual capacity of 100,000 vehicles.
The Jeonju plant will introduce various models of vehicles in its hydrogen-powered lineup. This includes car transport trucks based on Hyundai’s Xcient hydrogen vehicle model, as well as refrigerated trucks and fuel cell tractors. Moreover, Hyundai plans to develop and produce new hydrogen-powered express buses and low-floor metropolitan shuttle buses by 2027.
Hyundai’s decision to enhance its manufacturing capabilities in the hydrogen vehicle sector is driven by the intensifying competition it faces. Chinese commercial vehicle makers and European giants like Volvo, Man, and Mercedes-Benz have aggressively entered the Korean market. Chinese electric buses outsold their Korean counterparts for the first time in 2020, capturing over 50% of the domestic market.
Despite the challenges, Hyundai has been leading the global hydrogen vehicle market. The company made strategic investments, including becoming a shareholder in Germany’s H2 Mobility Deutschland GmbH & Co., a hydrogen fueling station operator. Hyundai’s Xcient, the world’s first mass-produced fuel cell electric heavy-duty truck, has gained significant recognition since its launch in 2019.
While fuel cell electric vehicles may have a higher price point compared to battery electric cars, they offer advantages in long-haul transport due to their extended range. Hyundai continues to invest heavily in the development and production of hydrogen-powered vehicles, aiming to spearhead the growing market.
In conclusion, Hyundai’s transformation of its Jeonju plant into a hub for hydrogen fuel cell electric vehicles showcases the company’s commitment to strengthen its position in the competitive global market. By focusing on hydrogen technology, Hyundai aims to capitalize on the advantages it offers and shape the future of sustainable transportation.
FAQ Section:
1. What is Hyundai’s plan to strengthen its position in the hydrogen vehicle market?
Hyundai plans to transform its commercial vehicle plant in Jeonju into a manufacturing hub for hydrogen fuel cell electric vehicles (FCEVs).
2. Why is Hyundai focusing on hydrogen-powered buses and trucks?
Hyundai aims to increase the plant’s capacity utilization by focusing on the production of hydrogen-powered buses and trucks.
3. What vehicles will be included in the Jeonju plant’s hydrogen-powered lineup?
The Jeonju plant will introduce various models, including car transport trucks, refrigerated trucks, fuel cell tractors, express buses, and low-floor metropolitan shuttle buses.
4. What is driving Hyundai’s decision to enhance its manufacturing capabilities in the hydrogen vehicle sector?
Hyundai faces intensified competition from Chinese commercial vehicle makers and European giants like Volvo, Man, and Mercedes-Benz, who have aggressively entered the Korean market.
5. How has Hyundai been leading the global hydrogen vehicle market?
Hyundai has made strategic investments and gained recognition for its Xcient model, the world’s first mass-produced fuel cell electric heavy-duty truck.
6. What advantages do fuel cell electric vehicles offer?
Fuel cell electric vehicles, although pricier than battery electric cars, have an extended range which makes them suitable for long-haul transport.
7. What is Hyundai’s goal in investing in hydrogen-powered vehicles?
Hyundai aims to spearhead the growing market of hydrogen-powered vehicles by investing heavily in their development and production.
Definitions:
– Hydrogen fuel cell electric vehicles (FCEVs): Vehicles that use hydrogen as a fuel source and generate electricity through a chemical reaction between hydrogen and oxygen.
– Capacity utilization: The extent to which an asset, such as a factory, is being used or producing output relative to its maximum potential capacity.
Suggested Related Links:
– Hyundai Official Website
– Hydrogen Fuel News
