As many rivals are being squeezed out of China by low-cost EVs, Hyundai has a plan to fend off the competition. According to a new report, Hyundai is pouring resources into launching its first dedicated EV in China, due out next year.
Although electric vehicle sales continue climbing in China, the largest EV market globally, many legacy automakers are struggling to stay afloat.
According to the latest figures from the China Association of Automobile Manufacturers (CAAM) (via S&P Global), China sold a record 1.29 million new energy vehicles (EVs and PHEVs) in September, up 17% from August and 42% year over year.
As ICE cars continue falling out of favor, EV sales surpassed gas-powered car sales for the second consecutive month, with a 51.8% share of total vehicle sales last month.
Those who have been slow to transition are feeling the heat. Toyota, Volkswagen, GM, Honda, and others have all cut jobs in China as the market rapidly shifts to electric vehicles.
Hyundai has been no exception. Beijing Hyundai’s sales have been slumping since 2017. Through September, Korean automaker’s share of the China market dropped to just 1.2%.
However, Hyundai believes it can defy the market and turn things around. On October 18, Hyundai Motor China Advanced Tech and R&D Center became independent in Shanghai. The facility is Hyundai’s first overseas digital R&D center and will spearhead the automaker’s return.
Hyundai to launch EVs in China to fend off low-cost rivals
Yang Feng, the general manager of Hyundai’s new research and development facility, said in an interview with Shanghai news outlet Jiemian News that the company is launching its first dedicated EV for China next year.
Unlike other EVs, the dedicated model will be exclusively designed for buyers in China and will feature advanced new tech and designs.
Yang Feng, the first employee recruited by Hyundai China’s advanced tech R&D center, said the facility combines self-development with cooperation with local suppliers. It also includes leading tech suppliers.
According to local reports, Hyundai is partnering with Thundersoft, a smart cockpit provider, and Jianzhi Robotics, an intelligent driving supplier in China, to power its next-gen EVs.
Although Yang Feng admitted that Hyundai has struggled in recent years, the company hopes that by fusing its manufacturing expertise with local tech, it can quickly catch up with domestic automakers. Hyundai could even develop exclusive EV platforms for China.
Even some foreign brands that are pulling out of China now to protect profits will return for its smart tech, according to Fang Yinliang, McKinsey global director and partner.
“Whether it is foreign-funded auto brands or parts manufacturers, their investment in the Chinese market is likely to increase,” Yinliang explained. It’s not just about setting up R&D centers but investing in innovative Chinese companies “which will feed back to the global market.”
The tech from its new R&D center in China is not only expected to help boost sales in the region but could also be used for Hyundai and Kia’s global exports.
Electrek’s Take
Despite aggressive global expansion plans, Hyundai has had a minor presence in China. The automaker believes its new advanced tech R&D center will help turn things around quickly, with its first dedicated EV launching next year.
Hyundai is not the only automaker looking for China’s EV tech. Volkswagen expanded its partnership with XPeng with plans to launch the first co-developed EV for China in 2026.
Mercedes-Benz is investing heavily to launch a new intelligent driving EV (end-to-end capabilities) in 2026.
With Chinese automakers now looking overseas for growth in key markets like Europe, Southeast Asia, and Latin America, Hyundai and others are looking to launch a counterattack.
Source: Jiemian News
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However, Tesla has since removed Nissan from its list of automakers with access and switched the Japanese automaker back to the “coming soon” list.
Nissan confirmed to Electrek that access is not currently available, but it will be available by the end of the year.
It sounds like a miscommunication on Tesla’s side. We hear that it should be coming soon.
Elon Musk fired Tesla’s entire charging team – seemingly to make an example of its then-head of charging, Rebecca Tinucci, who reportedly disagreed with Musk about making further layoffs following another layoff wave.
Instead of just firing her, Musk decided to fire the entire team and then sent an email to other Tesla managers using the charging team situation as a warning.
Tesla has since had to rehire several former members of its charging team to rebuild the department.
This is believed to have slowed down the opening of the Supercharger network to other automakers in North America. We were told that communications with Tesla’s charging team were difficult to non-existent for those automakers for weeks earlier this year.
Europe’s “green dream” Northvolt has filed for bankruptcy protection in the US after a rescue package failed to go through, leaving the battery maker with just one week’s worth of cash in the account. Cofounder and CEO Peter Carlsson, who spearheaded a costly expansion, has also quit.
The Swedish-owned battery maker filed for Chapter 11 in the Southern District of Texas, reports Bloomberg, with $5.8 billion debt. CEO Peter Carlsson, Telsa’s former chief products officer, stepped down from his role as CEO after the filing, but will remain onboard as advisor and director.
According to a statement, Northvolt said that its main factory will maintain business as usual during the reorganization, as the company now has a buffer from creditors, giving it time to restructure the balance sheet. However, the company said that this will not impact its business in Germany, and through the court process, Northvolt now has access to about $145 million in cash collateral. An additional $100 million in debtor-in-possession financing will be added to the pot via one of its customers, the report said.
The company still has a $7 billion project in place in Quebec – a new campus that is set to include a cell production plant, battery recycling, and cathode active-material production facilities – and the bankruptcy won’t affect those plans, the company said on its website. “Northvolt Germany and Northvolt North America, subsidiaries of Northvolt AB with projects in Germany and Canada, are financed separately and will continue to operate as usual outside of the Chapter 11 process as key parts of Northvolt’s strategic positioning.”
The plant is expected to have capacity to produce 30 GWh of battery cell every year, with an expansion set to double that output, making it enough to power 1 million EVs. The Canadian government is putting $1.334 billion CND toward the project, with Quebec chipping in another $1.37 billion CND.
Northvolt has hit hard times in recent months, once thought of as Europe’s best shot to homegrown EVs and the makers of “the world’s greenest battery.” Enthusiasm mounted as the company opened the doors to its first plant in Sweden, in the small town of Skelleftea near the Arctic Circle, in 2021. Billions of dollars have been invested into the company, and Volvo, VW, and BMW rushed to place future orders.
All of this enthusiasm has been fueled by a vision to cut dependency on China by creating greener EV batteries using 100 percent recycled nickel, manganese, and cobalt. Plans were put in place to build factories in Gothenburg, in southern Sweden, and Poland, Germany, and Canada, all backed by huge government subsidies. Back in January, the company raised an additional $5 billion, firmly locking in its position as one of Europe’s best-funded startups and recipient of the largest-ever green loan in the EU.
But then things started going south, with Northvolt’s production problems and massive delays forcing BMW to cancel its €2 billion battery cell order with the company. This past May, Northvolt also announced that it pushing back its plans for an IPO until next year. The interim report that followed revealed the dire state of its finances and how far its production had fallen short of goals, with Carlsson admitting he had been “too aggressive” with the company’s expansion plan.
Since Northvolt has put in place a series of changes to reset the company’s course, including bringing onboard a new CFO, leaving the former CFO to focus solely on expansion plans. Plus the company started making cuts, including closing down its research center, Cuberg, in San Francisco and deprioritizing secondary businesses. At the end of September, Northvolt announced that it would cut 1,600 staff from three Swedish sites and about 20 percent of its international workforce.
Last month, Volvo started proceedings to take over their joint venture with Northvolt, while Volkswagen Group’s representative to Northvolt’s board stepped down this month. Sweden, for its part, is ruling out taking a stake to save its homegrown enterprise, Bloomberg reports. Carlsson had said last month that the company needs more than $900 million to permanently shore up its finances.
Photo credit: Northvolt
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Leading yard operation 3PL YMX Logistics has announced plans to deploy fully twenty (20) of Orange EV’s fully electric Class 8 terminal trucks at a number of distribution and manufacturing sites across North America.
As the shipping and logistics industries increasingly move to embrace electrification, yard operations have proven to be an almost ideal use case for EVs, enabling companies like Orange EV, which specialize in yard hostlers or terminal tractors, to drive real, impactful change. To that end, companies like YMX are partnering with Orange EV.
“This relationship between YMX and Orange EV is a significant step forward in transforming yard operations across North America,” said Matt Yearling, CEO of YMX Logistics. “Besides the initial benefits of reduction in emissions and carbon footprint, our customers are also seeing improvements in the overall operational efficiency and seeking to expand. Our team members have also been sharing positive feedback about their new equipment and highlighting the positive impact on their health and day-to-day activities.”
This Orange looks good in blue
One of the most interesting aspects of this story – beyond the Orange EV HUSK-e XP’s almost unbelievable 180,000 lb. GCWR spec. – is that this isn’t a story about California’s ports, which mandate EVs. Instead, YMX is truly deploying these trucks throughout the country, with at least four currently in Chicago (and more on the way).
“Our collaboration with YMX Logistics represents a powerful stride in delivering sustainable yard solutions at scale for enterprise customers,” explains Wayne Mathisen, CEO of Orange EV. “With rising demand for electric yard trucks, our joint efforts ensure that more companies can access the environmental, financial, and operational benefits of electrification … this is a win for the planet, the workforce, and the bottom line of these organizations.”
We interviewed Orange EV founder Kurt Neutgens on The Heavy Equipment Podcast a few months back, but if you’re not familiar with these purpose-built trucks, it’s worth a listen.