Hyundai Becomes Latest Automaker to Stop Developing New Internal Combustion Powertrains
【Summary】To free up some resources to invest in electric vehicles, Hyundai will cut the number of models in its lineup that are powered by fossil fuels by 50 percent.
While consumers may be slow to make the switch from gasoline-powered vehicles to electric ones, automakers aren't wasting any time by focusing their efforts on battery-powered powertrains. Numerous automakers have announced plans to stop upgrading internal combustion engines, and another one has joined the group. Hyundai recently announced that it would stop developing gasoline powertrains. The South Korean automaker is also taking things to another level by cutting the number of internal-combustion models in its lineup.
Half Of Gas-Powered Cars Will Get Cut
According to a report by Reuters, two unnamed sources claim Hyundai will be cutting 50 percent of internal-combustion models from its lineup as a way to free up resources to invest in electric vehicles. The strategy was approved by management at the top level in March.
"It is an important business move, which first and foremost allows the release of R&D resources to focus on the rest: electric motors, batteries, fuel cells," said the anonymous source.
While Hyundai has no plans to develop new gasoline-vehicle powertrains, the automaker will focus on improving the efficiency of its existing internal combustion powertrains. For consumers that aren't ready to switch to an electric vehicle, that's good news, as Hyundai won't be giving up on gasoline engines.
Why Make A Dramatic Decision?
There are a few reasons for Hyundai's decision to cut half of its internal combustion lineup and stop developing new internal combustion engines. For one, electric vehicles are incredibly expensive to develop, as automakers have not started to make money on EVs yet. Second, stricter CO2 emissions in Europe and China are forcing automakers to accelerate their electric vehicle plans. Compared to other countries, the U.S. is far behind others in forcing automakers into coming out with efficient vehicles.
Hyundai Motor Group, which includes Hyundai, Kia, and Genesis, has some large plans for its electric future. The automaker wants to sell one million EVs per year by 2025. By that year, the automaker wants to have a 10 percent share of the global EV market. Last year, Hyundai announced a bold plan to come out with 23 electric vehicles by 2025. Kia is working on coming out with seven new electric vehicles by 2027. Genesis' electrified plans aren't as readily available or as exciting, though the luxury brand recently came out with its first electrified vehicle with the Electrified G80 sedan.
A few other companies have announced similar plans to stop producing new gasoline powerplants, like Daimler, Volkswagen, and Audi. Other automakers, like Porsche, are looking for ways to keep the internal combustion engine alive by coming out with eco-friendly fuels.
Vineeth Joel Patel
Joel Patel has been covering all aspects of the automotive industry for four years as an editor and freelance writer for various websites. When it comes to cars, he enjoys covering the merger between technology and cars. In his spare time, Joel likes to watch baseball, work on his car, and try new foods
Honda Ditches Plan for Tackling EVs Alone, Embraces Partnerships
Tesla Full Self Driving Subscription Priced at $199 Per Month
Tesla Plans to Let Other EVs Use its Superchargers
Ford Discontinues Diesel Engine For F-150 Pickup
GM Advises Bolt EV Owners to Park Vehicles Outside Over Fire Risk
Jeep’s Future Includes Electric SUVs, Autonomous Off-Roading, and Drones
GM, Startup Commercial Company BrightDrop Announce Fleet Charging Service
Ford Receives Supply of Chips To Finish Producing its F-Series Trucks
- Ford is Boosting its EV Investments to More Than $30 Billion, Stock Reaches 5-Year High
- Ford Unveils the Mach-E Extended Range RWD SE Model for the China Market, its Second Subsidized EV
- Baidu to Open China's First Public Commercial Robotaxi Service Without Safety Drivers on May 2
- California Utility Company Plans to Install 38,000 EV Chargers in the State Over the Next 5 Years
- Tesla Chief Elon Musk Claims the Redesigned Roadster With SpaceX Package Will Hit 60 MPH in 1.1 Second
- Autonomous Driving Startup WeRide Reaches a $3.3 Billion Valuation With a New $310 Million Series C Funding Round
- Electric Truck Startup Lordstown Motors Now Claims it Has No Binding Truck Orders
- Automaker Stellantis Announces its Bold EV Plans, Will Invest $35 Billion to Electrify its Global Vehicle Lineup
- Tesla’s Battery Supplier CATL Plans to Build a Major EV Battery Factory in China
- The Audi A7 PHEV Named Best Luxury Plug-in Hybrid of 2021 by U.S. News & World Report