Request for Hyundai Motor Group to cut production of electric vehicle parts

Hyundai Motor Group has asked its major suppliers to cut production of parts for some electric vehicles that are selling poorly by up to 20%. This is the aftermath토토사이트 of a series of bad news surrounding the electric vehicle market, which has stagnated sales at home and abroad, and demand has decreased compared to the initially predicted supply.

According to the auto parts industry on the 6th, Hyundai Motor Group recently asked multiple partners to temporarily reduce production of parts for some electric vehicle models by 15 to 20 percent for the remaining third quarter (August to September).

Usually, finished car manufacturers share vehicle production plans with their partners on an annual, quarterly, or monthly basis so that they can prepare the delivery volume in advance. Hyundai Motor Group has been requesting suppliers to increase production due to the increase in demand for electric vehicles during the Corona 19 pandemic, but it is unusual to announce a plan to cut production like this time.

The models that Hyundai Motor Group requested to reduce production of electric vehicle parts from its suppliers include the Genesis GV70 electrified model (project name JK EV ), Genesis GV60 ( JW EV ), Hyundai Motor Company Ioniq 6 ( CE EV ), and Kia Niro Plus ( DE PBV EV ) . handed down

The biggest reason for production cuts is the sluggish sales. Except for the U.S. market, sales of all models for which Hyundai Motor Group has requested production cuts are lower than expected at the beginning of the year. Looking at the Hyundai Motor Group’s domestic and overseas electric vehicle sales performance from January to July this year, the Genesis GV60 was 2710 units, down 31.2% from the same period last year (3937 units).

The Ioniq 6, which was released less than a year ago, sold 7,267 units, with an average of 1,000 units sold per month. The Niro Plus, which Kia introduced targeting the purpose-based mobility ( PBV ) market such as taxis, recorded poor performance with 2,290 units sold in Korea. This compares with a more than 9% increase in Hyundai Motors and Kia’s overall sales performance over the same period.

A series of bad news surrounding the electric vehicle market is also the background of production cuts. After the Corona 19 endemic, high interest rates continued, and more consumers felt the burden of purchasing relatively expensive electric vehicles, and quality issues such as fire concerns and loss of power while driving continued to emerge. In the United States, Tesla is competing with Tesla for leadership in the charging method for electric vehicles, and in Korea, imported electric vehicles are increasing their market share. Sales in China and Japan, which have been selected as new markets, are also low.

Among partners, voices of concern about a decline in sales are growing. This is because new investments were made in anticipation of the growth of the electric vehicle market, new equipment was introduced, and production lines were expanded, but the order volume is not good.

An official from the parts industry said, “As Hyundai Motor and Kia’s plan to cut electric vehicle production, which accounts for more than 80% of the supply, is shared with the first-tier partners, the second-tier partners are also affected one after another.” There will inevitably be disruptions to production targets and sales,” he said.

Regarding the request for production cuts, the Hyundai Motor Group said, “There is nothing we can confirm.”

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