Hyundai Motor Group is set to bolster its hybrid vehicle production with a strategic acquisition of batteries sufficient for 200,000 vehicles each year. These batteries will be first installed in new vehicles expected to debut in 2028.
Initiating Supplier Selection
In preparation for this expansion, Hyundai has initiated the selection process for new battery suppliers by distributing a Request for Quotation (RFQ) to its domestic automotive parts partners. This document outlines the specifications and price requirements for the next-generation hybrid vehicle batteries, targeting primary suppliers for collaboration.
Securing Supply Amid Growing Demand
The move follows discussions that started last year with both large and medium-sized component manufacturers to secure a battery supply for hybrids. Hyundai plans to initially purchase between 100,000 and 200,000 battery units annually, gearing up for a total capacity of one million units by 2028.
This procurement is a response to the rapidly growing demand for hybrid vehicles. Hyundai and Kia reported that their global sales of eco-friendly vehicles, including electric and hybrid models, surpassed 300,000 units in the first quarter alone, with hybrid models accounting for 210,000 of these. The two brands are not only enhancing their hybrid offerings but are also developing new engines and hybrid systems, including plug-in hybrids.
Expanding Hybrid Offerings
The increased focus on hybrids also compensates for a temporary dip in demand ahead of the wider adoption of electric vehicles. Hyundai has raised its hybrid sales targets in response, with Kia’s hybrid sales jumping 30% year-over-year to 93,000 units in the first quarter. Kia’s President, Song Ho-sung, announced during the ‘CEO Investor Day‘ that the company plans to expand its hybrid lineup from six to nine models by 2030, aiming to double its sales to 882,000 units.
Future Plans and Supplier Collaboration
Looking ahead, Hyundai will continue to evaluate RFQs, form partnerships with new suppliers, and set up production systems with selected companies in the first half of the year. According to an industry insider, “Hyundai is planning to not only meet the global demand for hybrids and electric vehicles but also strengthen its battery supply chain through collaborations with new partners.”
This strategic expansion underscores Hyundai’s commitment to leading in eco-friendly transportation, aligning with global trends towards more sustainable automotive solutions.
