About Jae Chang
Jaehoon Chang, CEO of Hyundai Motor, has stated that the company aims to achieve annual electric vehicle (EV) sales of 2 million by 2030, supported by the development of two additional dedicated EV platforms that will bring the total number of EV models to 18. He described the company's existing eGMP platform as a strong enabler of EV performance and reliability. Chang acknowledged intense competition and price drops in the EV market, particularly from Tesla, but argued that pricing policy should remain consistent to avoid deteriorating car value and causing customer dissatisfaction. He said Hyundai is focusing on customer value through lease programs, attractive financing, and charging service benefits, especially in the U.S. market where the Inflation Reduction Act has created challenges. Chang noted that Hyundai and Kia became the first-ever global top-three automaker by volume in the third quarter of 2022, driven by strong sales in SUVs, the Genesis brand, and EVs, and that the company is accelerating its transition to carbon neutrality.
Chang has also discussed Hyundai's focus on hydrogen fuel cell technology as a long-term alternative to battery EVs, citing advantages such as longer driving ranges and faster refueling. He stated that the company is investing in hydrogen refueling infrastructure and exploring collaborations to advance fuel cell development. Chang emphasized that Hyundai's shift does not mean an end to EV research and development, as the company continues to invest in battery systems and electric drivetrains. He identified the U.S. and European markets as key growth regions and said penetrating the U.S. EV market is a priority, while also noting headwinds such as inflation and chip supply constraints. Chang said Hyundai is working to secure battery sourcing through potential joint ventures and long-term contracts, and is integrating chip supply chains and developing alternative chips to manage supply issues.
Source: AI-verified profile updated from Jae Chang's recent appearances.
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Transcript (7 segments)
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Jae Chang0:00
I think it is also important that we have dedicated EV platform. Only a few OEMs have successfully developed and launched an EV platform, and our EV platform, which is E-GMP, is a strong enabler to ensure the EV's performance, reliability, and also the usability. I think this is a very strong enabler of photo feature as well. In this sense, we are now developing two more platforms, and that enables us to have 18 models by year 2030, and we are thinking to achieve 2 million EV sales around year 2030.
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Interviewer0:47
Because the earnings recently have been so strong that there is a concern that it's playing out in the market that maybe the earnings are expected to peak soon. What do you say to that?
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Jae Chang1:01
Yes, so we see very high competition, especially in the EV area, but that's why we also see the price competition, it's a huge price drop. But I believe the pricing policy should be consistent, otherwise that will deteriorate the value of the car and eventually cause customer dissatisfaction. So we're focusing on creating value to the customer, focusing more on the guaranteed original value, and also attractive lease programs.
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Interviewer1:47
But when companies like Tesla come out with a price war, can you afford not to engage?
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Jae Chang1:53
Yes, well I think the price competition which is rising from Tesla and all spreads to other OEMs, but somehow there should be some other points that we have to see in a different way. That's why I just mentioned earlier, we focus more on customer value, keeping the value as guaranteed as much as possible from outside, and the lease program more attractive, and customer care programs as well.
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Interviewer2:23
You're focusing on the lease program at this point in the U.S. market because of the Inflation Reduction Act, I should say. How much of a headache is it for Hyundai Motor at this point?
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Jae Chang2:33
It is very much challenging, and we set up the countermeasure both in short term and long term. For the short term, as you mentioned, we focus on enhancing the lease penetration up to 30% or even higher. And that's where we think of the customer value, more on the original value, and that's how we design our lease program. Also together with attractive finance program and customer care programs such as charging service benefits, etc.
