Hyundai Motor Group to Host Internal Test Drive of Chinese EVs at Namyang R&D Center

According to a report by Hankyung, Hyundai Motor Group is shifting its approach to evaluating global competitors by organizing an internal electric vehicle (EV) test drive and evaluation event for executives and research employees at its Namyang R&D Center. Industry sources cited by the publication on May 25, 2026, indicate that the management and labor union of Hyundai Motor Group have agreed to host this event to directly assess the technological development of Chinese automotive manufacturers. Moving away from the traditional industry practice of reverse-engineering disassembled vehicles in isolated laboratories, the group aims to evaluate these vehicles through active track testing. Industry analysts interpret this as a strategic shift to objective learning, looking past the long-held stereotype that Chinese automobiles are merely low-cost products.

Six Brands Scheduled for Testing: From Entry-Level to Premium Models

The planned evaluation lineup includes six major brands: BYD, Xpeng, Xiaomi, Li Auto, Stelato (a joint venture between Beijing Automotive Group and Huawei), and Tesla.

While some brands already maintain a commercial presence in South Korea, specific vehicles from Xpeng, Xiaomi, Li Auto, and Stelato have been imported strictly for this event, as they have not yet officially launched in the domestic South Korean market. Employees will drive the vehicles on the dedicated tracks at the Namyang R&D Center in Hwaseong, Gyeonggi Province, to evaluate specific performance benchmarks, including:

• Driving performance

• Autonomous driving capabilities

• Battery efficiency

The vehicle selection highlights the broadening spectrum of China’s EV sector, which has expanded from budget-focused models to premium categories:

• Stelato: The premium large electric sedan, the S9, retails at its highest tier for 449,800 RMB (approximately 100 million KRW) in China.

• Xiaomi: The SU7 Ultra targets luxury sports sedans, recording a 0 to 100 km/h acceleration time of 1.98 seconds. It is priced at 814,900 RMB (approximately 180 million KRW), which represents roughly 60% of the price of the Porsche Taycan Turbo GT (valued at around 300 million KRW), which clocks the same speed in 2.1 seconds.

• Li Auto: This brand specializes in Extended-Range Electric Vehicles (EREVs)—a technology currently being developed by Hyundai Motor Group—focusing exclusively on SUVs and minivans.

• BYD: The company maintains a strong hold on the entry-level market, selling its compact Dolphin EV for 24.5 million KRW.

• Xpeng: Known for software integration, Xpeng generates licensing revenue from autonomous driving systems provided to Volkswagen. The company has announced plans to manufacture new vehicles equipped with Level 4 autonomous driving technology within the year.

HMG Management Research Institute Upgrades Market Threat Levels

The internal evaluation follows growing concerns documented within the automotive group regarding market competition. In a recent internal corporate report, the HMG Management Research Institute upgraded the competitive threat level of Chinese automakers within the South Korean domestic market to a "Moderate Threat."

The institute's report highlighted that while market competition has intensified across ASEAN countries, Latin America, Australia, the Middle East, and Africa, risk levels are now climbing substantially in both Europe and South Korea.

Globally, manufacturers face several changing market variables:

• In the United States, EV demand slowed following the removal of Inflation Reduction Act (IRA) subsidies.

• In mainland China, domestic Chinese brands have assumed market dominance.

• Across Europe, the Middle East, and broader Asia, Chinese manufacturers are diversifying their approach from selling finished vehicles to exporting technology and proprietary platforms (referred to as a "Strategy 2.0").

Changing Domestic Market Shares in South Korea

Hyundai's domestic home market is showing shifting consumer patterns. In the preceding month, BYD reached fourth place among imported automotive brands in South Korea with monthly sales hitting 2,023 units.

Looking at the broader market, the domestic market share of electric vehicles manufactured in China surged from 4.7% in 2022 to 33.9% last year. Following this expansion, additional premium brands are entering the market: Zeekr opened a showroom in Gangnam, Seoul, Xpeng established its local South Korean subsidiary, and industry observers expect Xiaomi to establish a domestic presence soon.

According to an industry insider cited by Hankyung, Hyundai Motor Group is attempting to find a new breakthrough by objectively acknowledging the competitive strengths of Chinese vehicles.