Why Is Hyundai Doubling Down on Both Electric and Traditional Cars Right Now?
If you’ve been following the car market lately, you’ve probably noticed that electric vehicles (EVs) are everywhere—at least in the headlines. But here’s the twist: Hyundai isn’t putting all its eggs in the EV basket just yet. Instead, the brand is taking a more balanced approach, investing in electric, hybrid, and good old-fashioned internal combustion engine (ICE) cars. Why? Because the EV revolution, especially in Europe, is moving a bit slower than many expected.
Xavier Martinet, Hyundai’s new CEO for Europe, believes there’s untapped potential for the brand in the region. While Hyundai is a household name in places like the US and India, its European presence hasn’t quite reached the same heights. Martinet’s strategy is simple but smart: don’t shut out any customer. Whether you want a zippy electric city car or a reliable petrol hatchback, Hyundai wants you to find it in their lineup.
What’s Behind Hyundai’s Focus on Fleets and Small Cars?
One area where Hyundai sees big room for growth is fleet sales. Right now, Hyundai’s private sales outpace its fleet business, but Martinet wants to change that. Why? Fleet sales—think company cars, rental agencies, and government contracts—are a huge part of the European market. They’re steady, often large-volume, and can help boost a brand’s visibility on the road.
Then there’s the B-segment. If you’re not a car industry insider, that’s basically the small car category—think compact hatchbacks and crossovers. In Europe, these cars are everywhere, from city streets to country lanes. Hyundai’s refreshed i20 and Bayon models are aimed squarely at this segment, and there’s even a production version of the Concept Three on the way. Martinet sees this as a golden opportunity to win over new customers and grab a bigger slice of the market.
How Is Hyundai Responding to Slower EV Adoption in Europe?
Let’s be honest: the EV transition hasn’t been as fast as many automakers (and governments) hoped. According to the European Automobile Manufacturers’ Association, EVs made up about 14.6% of new car sales in the EU in 2023—a record, but still a minority. And the pace is heavily influenced by regulations and incentives, not just consumer demand.
Martinet is candid about this challenge. He points out that while Hyundai will soon offer a full range of EVs—from the city-sized Inster to the upcoming Ioniq 9 SUV—many customers still want hybrids or ICE vehicles. That’s why the new i20 and Bayon will come with hybrid options. Hyundai’s philosophy? Give people what they want, and let them choose the powertrain that fits their life.
What Does This Mean for Hyundai’s Future Lineup?
If you’re shopping for a new car in the next few years, expect to see a lot of choice from Hyundai. The brand is committed to offering something for everyone—whether you’re ready to go fully electric, prefer the flexibility of a hybrid, or just want a straightforward petrol engine. This isn’t just about hedging bets; it’s about being prepared for whatever direction the market takes.
Martinet puts it plainly: if the EV transition stalls, Hyundai won’t be caught flat-footed. By maintaining a strong presence in every segment, the company can weather market volatility and keep its customers happy, no matter what the future holds.
Why Is Design Still a Top Priority for Hyundai?
Here’s something that often gets overlooked in the powertrain debate: design. Martinet believes that bold, distinctive design is one of the best ways to stand out in a crowded market. Hyundai isn’t just competing on technology or price—it wants its cars to turn heads and make an impression.
This focus on design isn’t just about aesthetics, either. In a world where many cars can feel interchangeable, a unique look and feel can be the difference between being someone’s first choice or their second (and as Martinet says, “If you’re the second preferred vehicle from customers, you’re the first one to not buy”). Hyundai’s recent models, with their sharp lines and futuristic touches, show the brand isn’t afraid to push boundaries.
What’s the Takeaway for Car Buyers and the Industry?
If there’s one thing to learn from Hyundai’s strategy, it’s that flexibility is key in today’s car market. The company isn’t betting everything on one technology or trend. Instead, it’s listening to customers, watching the data, and staying nimble. Whether you’re a fleet manager looking for reliable options, a city driver eyeing a compact hybrid, or an early adopter eager for the latest EV, Hyundai wants to have something ready for you.
It’s a reminder that, despite all the hype, the future of driving isn’t set in stone. Consumer preferences, regulations, and technology are all evolving—and the smartest brands are those that can adapt on the fly. Hyundai’s approach might not be the flashiest, but it’s grounded, practical, and, above all, customer-focused. And in a market as unpredictable as Europe’s, that might just be the winning formula.