Important partnerships are on the horizon. Hyundai and BAIC are reportedly finalizing details for the launch of a new electric vehicle brand in China. The aim is to take the lead in China’s booming electric market, which recorded a sales volume of 6.68 million units in 2023.
Hyundai does not want to lose customers in the Asian market, which is already happening, and it is clear that it needs to do something to try to compete with existing manufacturers. And who better than BAIC, with whom it has had a relationship for over ten years. Specifically, this relationship began in 2002, when the two companies formed a joint venture to build an automobile factory in China.
Although the parties have not yet confirmed it, it appears that the Hyundai-BAIC brand will soon be revealed, leaving behind the previously discussed potential partnership with Chinese automaker Arcfox, which ultimately did not materialize due to insufficient funding. Hyundai believes that a new electric vehicle brand will be more competitive than the marketing in China of its IONIQ electric models (currently IONIQ 5 and IONIQ 6).
The partnership with BAIC, codenamed “OE RE”, includes Hyundai’s goal to launch five new electric vehicles in China over the next three years. Hyundai Chairman Chung Euisun was reportedly fascinated after testing an electric car from Geely’s Zeekr brand, and asked his employees to take inspiration from the success of Chinese manufacturers.
The vehicles resulting from this partnership should be equipped with LFP type batteries in order to offer them at more affordable prices. Hyundai-BAIC, with its new brand, wants to challenge the manufacturers who currently dominate the Chinese market with this type of batteries, such as BYD or CATL.