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Hyundai is trying to gain market share from Western and Japanese rivals along with the growth of Chinese electric vehicles in Europe as the Korean group bets on switching consumers in the EV era.
In an interview with the Financial Times, Xavier Martinet, new director of Hyundai’s European operations, said the South Korean group is open to building a third factory on the continent, with the aim of replicating the expansion achieved in the US.
“There’s no reason why we’re initially affected. “We might actually benefit somewhere. Many people in EVs are more prepared to switch brands than they have in the past.”
Hyundai and its sister brand Kia have changed the business from a lesser-known foreign entrant to one of the most dominant marks in the market, particularly in EV sales. In March, the company completed construction of a $7.6 billion EV plant in Georgia, USA, with annual production capacity of up to 500,000 vehicles.
The group was second only to Tesla in US electric vehicle sales in 2023 and 2024, but GM recently ranked second in the first quarter of 2025.
Martinet, a former Renault executive, said US Hyundai is “one of the pioneers or one of the leading brands in the market.” In Europe, “we need to work in this direction,” he said.
According to a survey by Schmidt Automotive, Hyundai and KIA currently have an EV share of 8.4% in the UK and broader Europe, but 7.9% in Tesla, 28% in the Volkswagen Group and 10% in BMW.
The company says it wants to double EV sales in Europe this year, including the new small electric vehicle interior, which costs under 25,000 euros, and the new three-row electric sports utility vehicle Ioniq 9.
The South Korean group sees Chinese brands’ push towards Europe as an opportunity, but also acknowledges an increase in threats from BYD, Chery and other Chinese brands. BYD alone has gained a 3.1% EV share in Europe.
“We need to take the game to the highest possible level to compete with these newcomers who are challenging us,” Martinet said. “The question is, are you more prepared to fight this threat than others? We think so.”
New registrations for Hyundai and KIA vehicles have also fallen 3.5% from a year ago from January to May, according to the European automotive industry group ACEA.
The group’s advancement in the US is part of a broader global push targeting markets in India, the Middle East and Southeast Asia and Europe after the collapse of sales in China over the past decade.
However, we can see that BYD and Tesla models are under pressure in the home market by selling both Hyundai and Kia’s domestically produced EV products.
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The group hopes to leverage its scale to drive investment in Europe and accelerate the speed at which vehicles are developed in-house with component development.
Martinet says it is looking at improving customer maintenance and after-sales services by analyzing vehicle data.
If the company can successfully increase its market share in Europe, Martinet said it would consider expanding its manufacturing footprint in the Czech Republic and Turkey, although there is room for the group to expand its capacity at its two European factories.
“The idea is to go in this direction where you design vehicles for Europe, build them in Europe and sell them in Europe,” he said.
