The owner of both Hyundai and Kia car brands – Hyundai Motor Group is planning to offer electric vehicles to the US. Customers. The investment of $7.4 billion entails hydrogen refueling stations and unmanned flying taxis also.
The company will utilize its plant in Montgomery, Alabama to make the EV’s. The company will make the EV’s considering the parameters like the expansion of the production plant after learning the new policies for EV’s in the US and the market requirements. Since there has been a disruption in supply chain management over the past year, the brands are mainly focusing on the stability of the supply chain to meet the demand in the US.
There is a scope for the EV’s to have massive growth as the infrastructure bill proposed by the US President allocates $174 billion for charging stations, consumer rebates for American-made EVs, and a pledge to replace 645,000 government vehicles in the nation with electric vehicles. This makes the automakers plan for EV’s as there will be a huge transition to EV’s. Already the sales in the US for EV’s reach 1.8% in 2020.
The sales for Hyundai and Kia have already been soaring high with Kia reaching sales of 70,177 units in April, its sales grew 121.3 percent. Every year the Hyundai assembly plant in Alabama makes 400,000 vehicles. In addition to the present battery-powered Kona and Ioniq Hyundai will bring a new EV, the Ioniq 5, to the U.S by the end of this year. Similarly, Kia will bring the EV6 next year.
The company plans for concept cars- “Human-Centered Air Mobility Concept”, it aims for urban transportation which eliminates the fuss of traffic and solves time constraints. The company plans to do so by three interconnected solutions for mobility – Urban Air Mobility, Hub, and Purpose built Vehicles. The company is in plans to start a new subsidiary in Washington, D.C which is specifically for urban air mobility.
The conglomerate’s strategies for sustainable growth are by evolving into software-centered platform leaders. In a view of innovative business models, Hyundai plans to offer global automakers or Purpose Built Vehicle (PBV) companies dedicated platforms. Additionally, the company is planning for AI and big data based smart factory infrastructure.