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Hyundai Motor Group Aims to Become a Top 3 EV Manufacturer by 2030
[April 12, 2023]

Hyundai Motor Group Aims to Become a Top 3 EV Manufacturer by 2030

TMCnet News

Kia Motors has started construction of its new dedicated plant for the production of battery-electric purpose-built vehicles (PBV) in South Korea. The plant will be based at Kia's Hwaseong plant, located in Gyeonggi Province, and will have an annual production capacity of 150,000 units. The plant is set to showcase flexible production, smart innovations and human-centered principles, all while pursuing low carbon footprint. The new facility is a part of Hyundai Motor Group's plan to invest more than $18 million in the domestic electric vehicle industry by 2030, with the goal of making South Korea one of the top three players in the global EV market.

Kia's new PBV plant will showcase a cutting-edge smart factory, which will adopt innovative technologies such as automation, artificial intelligence, and machine learning. It will unify the new cell method with the original mass-production conveyor system to allow flexible production with more customization of various product types. The plant will be built as a low-carbon factory by operating a dry booth during the painting process of vehicle manufacturing, reducing carbon emissions by about 20 percent compared to existing factories by utilizing natural light and streamlining the manufacturing process.

One of the innovative manufacturing processes to be implemented at the new PBV plant is known as the 'cellular method,' which allows vehicle production based on diverse customer demands. The cell method is a process layout strategy that groups together machines or workstations that are used to produce similar products or parts. The goal of the cell method is to create a more efficient and flexible manufacturing process by reducing the distance that materials and products need to travel during production. Under the cell method, machines are arranged in a way that optimizes the flow of materials and products between workstations, with the aim of minimizing downtime, reducing costs and increasing productivity.

The PBV plant will be a 'human-friendly' plant, with heavy-duty work and tasks that require looking up at the ceiling automated, while enhancing the feeling of 'openness' and also reducing noise levels. Kia plans to show SW, the first model in the company's dedicated PBV lineup, in 2025. The model will be a mid-sized PBV and will be based on the 'eS' platform, a dedicated skateboard platform for battery electric PBVs, enabling various types of vehicle bodies to be flexibly combined.

Kia's investment in the new plant comes as part of Hyundai Motor Group's wider plan to enhance the competitiveness of the entire electric vehicle ecosystem, including research and development, production, and infrastructure, and to lead the way in driving change and innovation in the new global automotive industry.

Market research and analyst perspectives suggest that the electric vehicle market is expanding rapidly. According to a report by Allied Market Research, the global electric vehicle market size was valued at $162.34 billion in 2019, and is expected to reach $802.81 billion by 2027, registering a CAGR of 22.6%. The growth is attributed to the increasing demand for fuel-efficient and low-emission vehicles, stringent government regulations, and subsidies and incentives by governments to promote electric vehicles.

Moreover, the electric vehicle market is experiencing a surge in demand due to the growing awareness of the environmental impact of traditional fuel vehicles. As the world moves towards decarbonization and net-zero emissions, the demand for electric vehicles is only set to increase further. Governments around the world are offering incentives for the purchase of electric vehicles and investing in charging infrastructure to facilitate the transition to electric mobility.

Edited by TMCnet en espanol

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