Hyundai Motor Company is establishing an open production system in order to increase its lineup of electric vehicles and is jumping into markets for personal mobility (transportation method for single person) based on electric vehicle with small and medium South Korean companies. Hyundai Motor Company is making such moves in order to increase its lineup of electric vehicles that covers from electric sedan and SUV, and electric bus to ultra-compact electric vehicle for single person.
According to electric vehicle industries on the 19th, Hyundai Motor Company is pushing for co-development of ultra-compact electric vehicle with a South Korean small and medium company. It has analyzed its competitors and domestic and foreign markets starting from early this year and decided on outsourcing development and co-manufacturing of ultra-compact electric vehicles. It is planning on detailed strategies such as roadmap of production and release of electric vehicles. Corresponding project will be in charge by Hyundai Motor Company’s Korean Business Headquarters and research institute.
This small and medium company that will be working with Hyundai Motor Company has secured technologies such as design and manufacturing of ultra-compact electric vehicles and mass-production lines since many years ago. It is heard that it will first target domestic markets by combining its abilities with Hyundai Motor Company’s competitive edge in quality management, marketing, and maintenance infrastructures. It is then going to expand its business towards global markets through its experiences that it has gained from domestic markets.
It is heard that ultra-compact electric vehicle developed by Hyundai Motor Company and this small and medium South Korean company solves weaknesses of competitors’ ultra-compact electric vehicles that do not have air conditioner, heater, and windows and increases safety in driving. Therefore there is a high chance that this vehicle will be based on four-wheel platform. It is predicted that actual production of this vehicle will be after 2018 as they are currently in a beginning stage of discussion for vehicle’s specifications and design.

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<Renault’s ultra-compact electric vehicle called TWIZY>

It is also interesting that Hyundai Motor Company is developing and producing cars with an outside company. Recently electric vehicles are being used widely not just in regular markets but also in car-sharing and rental car businesses. Hyundai Motor Company is planning to supply its electric vehicles to its rental car and car-sharing businesses that it is pushing for through Ministry of Environment’s private propagation project of ultra-compact electric vehicles.
“We are currently discussing with outside companies in variety of forms in order to expand our lineup of ultra-compact electric vehicles as electric vehicle markets are expanding throughout the world.” said a representative for Hyundai Motor Company. “It is little early to talk about possible release date and mass-production of these vehicles as discussions are still in a beginning stage.”
Cooperation between Hyundai Motor Company and this small and medium company is expected to act as a new beginning for paradigm of entire automotive industries. Unlike internal combustion device that is complicated, electric vehicles are based on a simple structure that is composed of a motor, a battery, and a powertrain. Because structure is simple, small and medium companies can also jump into electric vehicle markets. After considering ultra-compact electric vehicle markets in South Korea and South-East Asian countries, Renault is pushing for outsourcing production with a South Korean small and medium company. Rather than simply working on SKD (Semi Knock Down) outsourcing production, Renault is planning to up the level of completion by one level higher by developing South Korean models such as refrigerating system.
“Just in Europe, there are incidences where small and medium companies are developing ultra-compact electric vehicles and are supplying them to automotive manufacturers, local government groups, and service providers.” said Professor Jung Koo-min of Kookmin University. “More small and medium companies will start to participate in ultra-compact electric vehicle business as it is easier to approach ultra-compact electric vehicles from technical aspect than normal electric vehicles.”
Renault released world’s first ultra-compact electric vehicle called ‘TWIZY’ in 2010 and sold about 30,000 TWIZYs just in Europe until now. After releasing TWIZY in South Korea, it is currently delivering 1,200 TWIZYs that were preordered to consumers in South Korea. Many delivery and distribution companies are ordering TWIZY as two TWIZYs can fit in one parking space and it can be easily driven in narrow streets.
Staff Reporter Park, Taejoon | gaius@etnews.com