Hyundai Motor Co

Hyundai promotes fuel cell electric vehicles over conventional internal combustion engine vehicles. In South Korea, one of Hyundai’s key markets, the company operates ‘experience zones’ which aim to introduce the public to hydrogen fuel and encourage its uptake among consumers. The company has also provided fuel cell electric buses for large events, such as the South Korean Winter Olympics, to promote the advanced fuel cell technology. Hyundai could further extend its engagement to other regions and set associated sales targets to demonstrate its commitment to its low-carbon transition.

Hyundai has failed to reduce its manufacturing emissions intensity to meet the company’s low-carbon pathway. Its increase in emissions intensity during periods of lower production suggest there are efficiency gains that could be made in Hyundai’s manufacturing processes.

Hyundai has begun to explore business activities outside of traditional passenger vehicle manufacturing but should develop these to become better prepared for the low-carbon economy. It currently has activities that facilitate low-carbon shifts in transport use, contribute to low-carbon personal mobility – namely car-sharing services – and reduce barriers for low-carbon vehicles to enter the market. Hyundai also strategically focuses on its hydrogen fuel cell technology and manufactures fuel cell electric mass transit vehicles for the South Korean market. Moreover, the company has created a hydrogen fuel cell car sharing service and is planning to develop hydrogen fuel infrastructure.

Hyundai has two manufacturing emissions reduction targets, one in the medium term until 2030 and another that reaches until 2050. While these targets have long time horizons, its proposed decreases are not ambitious enough to align with the low-carbon pathway. Furthermore, Hyundai’s reduction targets focus on manufacturing emissions rather than fleet emissions, which are more pressing. Hyundai should set fleet emissions reduction targets to demonstrate its commitment to decarbonisation.

Hyundai does not have a fleet emissions reduction target. While the company has committed to cutting 26 percent of its manufacturing emissions by 2030 and 51 percent by 2050 as compared to its 2016 levels, these targets still do not meet those set for the company’s low-carbon pathway.

Hyundai does not have a low-carbon transition plan, though it has a strategy to sell more fuel-efficient vehicles and to invest in hydrogen fuel cell technology. Hyundai aims to release 38 low-carbon vehicles by 2025, including plug-in hybrid, hydrogen, and other electric vehicles.

Hyundai currently invests in hydrogen fuel-related business activities, such as producing fuel cell electric buses. In 2017, Hyundai sold approximately 6 million light duty passenger vehicles. However, low-carbon vehicles represented less than 1 percent of these sales.

Hyundai has not managed to reduce manufacturing or fleet emissions enough to meet the company’s low-carbon pathway. Although the company has started to produce and sell low-carbon vehicles, its share of sales from these vehicles is still well below that required under the low carbon pathway allocated to the company.

Despite its strong consumer engagement and innovative business activities, Hyundai’s overall decarbonisation efforts are lagging behind industry peers. The company’s lack of strategic low-carbon planning is evident from its high manufacturing and fleet emissions. Hyundai could develop a comprehensive transition plan and set targets that are aligned with those for the low carbon pathway to better prepare for a low-carbon economy.