Chung Euisun, Chairman of Hyundai Motor Group, visited the Brazil production plant, a core base for economic cooperation between Korea and Brazil, on the 27th (local time) to refine the group’s mid- to long-term business plans. Traveling as a member of the economic delegation formed in conjunction with the President’s state visit to Brazil, Chairman Chung visited the production base in Piracicaba, São Paulo State, to examine the increasingly competitive local market environment and review new growth engines in future mobility and eco-friendly energy.

Brazil is the world’s sixth-largest automotive market, with annual vehicle demand reaching 2.5 million units, and the eighth-largest manufacturing power, producing 2.6 million units a year. With abundant core resources such as rare earths and graphite, it also has high strategic value from the perspective of electrification and renewable energy supply chains. The local market is dominated by flex-fuel vehicles (FFVs) that use a mixture of gasoline and ethanol, and with import tariffs on vehicles reaching 35%, securing a local production base is essential.

Recently, the importance of local investment has grown further as the Brazilian government introduced the “Green Mobility and Innovation Program (MOVER),” which grants benefits to companies investing in decarbonization, and reinstated import tariffs on eco-friendly vehicles. In addition, Chinese finished vehicle manufacturers such as BYD are acquiring closed plants, injecting large amounts of capital, and rapidly expanding their market share. These Chinese automakers are responding to tariff barriers by operating local plants and have risen into the top ranks of major brands in the first half of this year, reshaping the market landscape.

In response to these environmental changes, Hyundai Motor Group plans to swiftly introduce eco-friendly models tailored to the local market and combine them with the group’s hydrogen technology to maintain market leadership. Chairman Chung first visited the Latin America Regional R&D Center located within the plant site and asked researchers to strengthen local R&D capabilities and promote localization of powertrains.

He then toured the production line to check the manufacturing quality of the i20, which entered full-scale mass production in June, and of the flagship SUV model Creta. He also commended local employees for their efforts after the plant’s cumulative production surpassed 2.5 million units in March this year. The Brazil plant produces locally specialized models such as the HB20, Creta, and i20 on a mixed line with an annual capacity of 200,000 units. The newly introduced i20 is a strategic model targeting the local B-segment market, equipped with an engine dedicated to ethanol-blended fuel, a spacious interior, and advanced safety features. Hyundai Motor Group plans to strengthen cross-industry collaborative marketing to ensure the model’s successful establishment in the market.

After receiving reports from management, Chairman Chung stated that the group would provide unwavering company-wide support to turn the crisis arising from market changes into an opportunity, and called for an organizational culture faithful to fundamentals and principles. As future business directions, the group presented expansion of its SUV lineup, introduction of eco-friendly vehicles tailored to the Brazilian market, and the establishment of a hydrogen energy ecosystem.

Hyundai Motor Group will sequentially expand its lineup to respond to SUV demand, whose share is expected to increase by 2030. In addition, taking into account the high-tariff environment, the group is reviewing plans for local production of small electric vehicles. It also intends to quickly introduce next-generation SUVs equipped first with hybrid (FFV-HEV) powertrains that use ethanol and gasoline together. In the longer term, in line with the Brazilian government’s National Hydrogen Program (PNH2), the group aims to supply hydrogen commercial vehicles and hydrogen trams, and to pioneer new eco-friendly energy businesses such as green hydrogen production and power plant construction. Industry-academia cooperation with major local universities will proceed in parallel.

Business performance is also showing a favorable trend. According to the Brazilian National Federation of Automotive Vehicle Distribution (Fenabrave), Hyundai Motor Group sold 96,723 units in Brazil in the first half of this year, achieving its best first-half performance since 2019. This represents a 12.1% increase year-on-year, with a 7.1% market share, allowing the group to retain fifth place in the brand rankings. The HB20 series, a key volume model, has surpassed cumulative sales of 1.88 million units, while the Creta ranked first in SUV sales in dealer deliveries to general consumers in the first half of this year.

Meanwhile, the group is also receiving positive evaluations in terms of social contribution and organizational culture in the local market. Through reforestation activities for tropical rainforest restoration, it has planted 100,000 trees and has been running a free dental care program for local children and security personnel for more than 10 years. On the back of these efforts, the company has received “Outstanding Ethical Management” certification from the Brazilian Federal Court of Accounts (TCU) and has been selected as a “Great Place to Work” for nine consecutive years by a global evaluation agency. The local production base has maintained exemplary labor-management relations, achieving 15 consecutive years of wage negotiations without labor disputes.

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