The two automotive brands under the Hyundai Group, Hyundai Motors and Kia Motors, have reported cumulative global hybrid car sales of 200,000 units for the period ending 31 March 2014. According to an e-mail statement sent directly to IHS Automotive, domestic sales of hybrid cars accounted for 88,461 units, while sales in overseas markets stood at 115,742 units. The figures cover sales of all of Hyundai and Kia's hybrid models, which were first introduced in 2009.
In related news, Hyundai has announced plans to launch the Sonata hybrid model in Latin America during the second half of this year. The initial recipient of the Sonata hybrid model will be Ecuador, while the company also plans to ship the car to Chile, Colombia, and the Bahamas before the end of this year. Apart from the features that are available on the 2014 Sonata hybrid model, the models to be shipped to Ecuador are equipped with a newly developed hybrid power control unit that is better suited to mountainous conditions. The car also maintains a fuel economy of 16.8 kilometres per litre of gasoline (petrol) in the combined driving mode. Hyundai expects to achieve sales of 150 Sonata hybrid cars in the region this year. The automaker explained that, "The hybrid market is not that large, but these cars are viewed as being high-tech by consumers, so by selling the Sonata HEV [hybrid electric vehicle], Hyundai aims to improve its brand value that can spill over into overall vehicle sales."
Significance: Hyundai is South Korea's biggest carmaker and the world's fifth largest automaker by volume, according to IHS Automotive data. The automaker has been taking various strategic measures to improve its brand image, with an increasing focus on luxury cars combined with a strategic focus on the development of eco-friendly cars such as electric vehicles (EVs), hybrid cars, and fuel-cell electric vehicles (FCEVs), under Hyundai's eco-focused "Blue Drive" strategy.
Hyundai and Kia announced KRW4.1 trillion (USD4 billion) of investment in eco-friendly projects in 2009, to help elevate their position in the "green" vehicle market. Of the total, about KRW1.4 trillion (USD1.36 billion) is being spent on the development of fuel-efficient engines, and around KRW2.2 trillion (USD2.14 billion) is being directed towards the development of hybrid and hydrogen fuel-cell vehicles. Hyundai and Kia are said to be considering launching plug-in hybrid electric versions of their Sonata and K5 models in South Korea by 2015, the first plug-ins in the country.
Although the automakers may not make significant gains from production of such vehicles immediately, in the medium to long term Hyundai is expected to implement the full commercialisation of eco-friendly cars as the cost of the technology falls in line with the economies of scale, and as demand for such vehicles begins to grow steadily in global markets.