Hyundai to launch Euro 7-compliant car in Europe next year

Hyundai Motor Co., South Korea’s top automaker, is set to introduce a tougher emissions standards-compliant model in Europe next year ahead of its plan to sell only electric vehicles there from 2035 in a bid to reboot its sales in the region with clean cars, taking advantage of the bloc’s decision to sharply raise tariffs on Chinese-made EVs.

Hyundai Motor Co. is scheduled to assemble a prototype of the new Kona, its subcompact crossover sport utility vehicle (SUV) that meets the new Euro 7 emissions rule, from Nov. 4, industry sources in Seoul said.

The larger carmaker of the world’s No. 3 automaker Hyundai Motor Group is known to plan to change the engine and exhaust system of the SUV’s internal combustion engine trim and the battery system for its hybrid version, according to the sources on Wednesday.

Hyundai Motor Co. aims to mass-produce the new Kona from November 2025 after completing its development by May or June next year. The group plans to introduce the technology to other models of Hyundai Motor Co. and its affiliate Kia Corp.

TOUGHER EMISSIONS STANDARDS

The Euro 7 regulation establishes rules for the exhaust emissions of road vehicles, but also for other types of emissions such as tire abrasion and brake particle emissions. It also introduces requirements for battery durability.

The rule, which will come into force in November 2026, maintains the existing Euro 6 exhaust emissions limits for cars and vans but introduces stricter requirements for solid particles.

The regulation also includes stricter lifetime requirements for all vehicles in terms of both mileage and lifetime.

Automakers whose vehicles fail to meet the emissions standards in Europe are expected to pay fines of 15 billion euros ($16.3 billion) or give up manufacturing more than 2.5 million cars, industry sources said.

TO REBOOT SALES IN EUROPE

Hyundai Motor Group aims to revive its declining sales in Europe by launching Euro 7-compliant cars ahead of its rivals.

Hyundai Motor Co. and Kia sold 821,925 vehicles in Europe during the first nine months of the year, down 3.4% from a year earlier. Their market share in the region fell 0.4 percentage point to 8.4% during the period.

That came as Chinese companies aggressively expanded their shares in Europe, the world’s second-largest EV market.

China-made EVs made up 21.7% of the regional market last year, sharply up from a mere 2.9% in 2020, according to the European Automobile Manufacturers Association.

Their rapid growth hurt not only Hyundai Motor Group but also major European automakers. Volkswagen AG, the world’s second-largest carmaker, plans to close “at least” three factories in Germany, lay off staff and slash all workers’ pay by 10%.

European automakers, which usually spend about four years on new model developments, have lost competitiveness against their Chinese rivals, which launch new cars every year.

The European Union raised tariffs on EVs made in China to up to 45.3% to prop up the regional auto industry, which industry sources said is expected to cut Chinese EV makers' market share.

Hyundai Motor Group aims to raise its presence with customized models including internal combustion engine cars, hybrid vehicles and EVs for Europe, taking advantage of the weakening competitiveness of rivals in the region and higher tariffs on Chinese EVs.

The South Korean conglomerate also plans to sell only EVs in the region by 2035.

Write to Jung-Eun Shin and Jae-Fu Kim at newyearis@hankyung.com
 
Jongwoo Cheon edited this article.