Hyundai rules out China exit as it steps up EV push

Hyundai Motor said on Friday it has no plans to exit China despite lagging performance in the world's largest auto market, underscoring a renewed commitment tied to its electrification push.

"China is of vital significance for us. Some global brands, faced with intense local competition, are cutting investment or even exiting the Chinese market. That is not our option," said Li Fenggang, president of its joint venture Beijing Hyundai, as he unveiled the IONIQ brand in Beijing.

Last month, Skoda, a unit of Volkswagen, said it would stop sales in China by mid-2026 after struggling to keep up with the country's rapid shift toward smart electric vehicles.

Hyundai Motor Group, including its Kia brand, sold more than 7.2 million vehicles in 2025, ranking third globally behind Toyota and Volkswagen.

But the two brands' combined sales in China totaled about 450,000 units last year, a fraction of the roughly 27 million vehicles sold in the market.

Li acknowledged the company's underperformance compared with markets such as the US and Europe, attributing it in part to a delayed new energy vehicle strategy. "We have taken a hard look at ourselves. One of the reasons is that we lag in our NEV strategy," he said.

Hyundai unveiled two IONIQ concept models at the event, signaling a shift toward localized development. The VENUS sedan and EARTH SUV are both tailored specifically for Chinese consumers, the company said.

Li added that the traditional approach of introducing or adapting overseas-developed models for China is no longer viable, underscoring the need for products designed around local demand.

The first production model for the Chinese market will make its debut later this month at the Beijing auto show. The company said more models, including SUVs and coupes, will be launched in three years.

Jin Guangmei, a senior engineer at Hyundai's R&D center in Yantai, said future models will integrate driver-assistance technology from Momenta and include range-extended variants, a powertrain configuration that has gained traction in China's EV market.