Introduction:
Hyundai Motor Co., South Korea’s leading automaker, is set to transform its commercial vehicle plant in Jeonju, North Jeolla Province, into a global manufacturing hub for hydrogen-powered buses and trucks. This strategic move aims to keep Hyundai ahead of the competition from Chinese and European vehicle imports in the growing hydrogen fuel cell electric vehicle (FCEV) market.
Transforming the Jeonju Plant:
Hyundai’s domestic production division recently announced plans to transform the Jeonju plant into the company’s base for FCEVs. The plant currently produces electric buses, multi-purpose vehicles, mid-size trucks, and hydrogen-powered commute vehicles.
Increasing Production Capacity:
By focusing on hydrogen-powered vehicles, Hyundai aims to increase the Jeonju plant’s operating rates, which currently stand at around 40%. Earlier this year, the automaker ramped up its annual hydrogen fuel cell bus production capacity from 500 to 3,100 units.
Expanding Hydrogen Vehicle Lineup:
- Building car transport trucks based on Hyundai’s Xcient hydrogen vehicle model
- Producing refrigerated trucks and fuel cell tractors
- Developing and producing new hydrogen-powered express buses and low-floor metropolitan shuttle buses by 2027
Facing Challenges from Competitors:
- Chinese companies captured 50.9% of the domestic electric bus market in 2022
- Sales of Chinese-made electric buses outpaced Korean-made electric buses in the first five months of 2023
- Imported trucks from European manufacturers closely matched the sales of Korean-made trucks in 2023
The transformation of the Jeonju plant into a hydrogen vehicle manufacturing hub is a strategic move to counter these challenges.
Leading the Hydrogen Vehicle Sector:
Hyundai Motor has been investing heavily to maintain its leadership in the global hydrogen-powered vehicle market. The company’s Xcient, launched in 2019, is the world’s first mass-produced fuel cell electric heavy-duty truck.
Conclusion:
Hyundai Motor Co.’s transformation of its Jeonju plant into a global hub for hydrogen-powered vehicles positions the company to lead the FCEV market. With strategic investments, increased production capacity, and an expanding hydrogen vehicle lineup, Hyundai is poised to stay ahead of the competition and maintain its leadership in the global automotive industry.
