'Tougher eco rules in Europe chance for Hyundai, Kia'

Kia Motors Europe Chief Operating Officer Emilio Herrera speaks during an interview at the 2018 Paris Motor Show, Tuesday. / Courtesy of Kia Motors

By Nam Hyun-woo

PARIS -- While carmakers are striving to meet the toughening environmental regulations in Europe, the heads of Hyundai Motor's and Kia Motors' European bodies expressed their confidence, saying the stronger rules are an opportunity for their brands.

Hyundai Motor Europe Chief Operating Officer (COO) Thomas Schmid and Kia Motors Europe COO Emilio Herrera sat down for separate interviews during the 2018 Paris Motor Show, but they echoed they are ready for the wave of eco-friendly cars and the companies will have stronger presences in the European market.

According to the two brands, they sold 65,518 eco-friendly cars -- hybrids, plug-in hybrid electric vehicles (PHEVs) and electric vehicles (EVs) -- increasing more than 10 times from 6,089 in 2015.

The COOs agreed that such a strong presence will further increase amid the European market's stronger environmental regulations.

“In Europe we have very strict CO2 regulations and we have to cut carbon emissions under 95 grams by 2020, which will be very difficult. However, there are two trends which are going against that -- less diesel and Europeans' love for SUV -- which all mean more CO2,” Herrera said.

“The lucky situation is that Kia has a complete range of electrified vehicles that can easily face these strict regulations. This is a comfortable situation compared to other manufacturers.”

Kia Europe has hybrids and PHEVs and will add EVs in its product lineup, by releasing the Niro EV at the end of this year. It is also planning to launch fuel-cell EVs (FCEVs) in Europe in 2020.

Kia has already developed fuel-cell concepts based on its Sportage and Mohave SUVs, but is yet to mass produce FCEVs for the retail market. It is not known which model the FCEV will be based on.

Kia's green car models are showing rapid growth so far this year, selling 29,750 of the Niro hybrid and the Niro PHEV from January to August, up 41 percent from a year earlier.

“As said earlier, by 2025, the company plans to have 16 electrified vehicles of five hybrids, five PHEVs, five EVs and one FCEV in total,” he said. “So we are very lucky because we have all the power in-house and we can adapt to market needs.”

In Europe, each country has a different market situation and green car requirements. For example, in Norway 36 percent of its vehicles are already fully electrified, such as EVs and FCEVs. Adding PHEVs, more than 50 percent of the country's cars are powered by electricity, according to Herrera.

“On the other hand, Italy has 0.2 percent,” he said. “This is a big difference, but we are prepared,” Herrera said.

Hyundai Motor Europe Chief Operating Officer Thomas Schmid speaks during an interview at the 2018 Paris Motor Show, Tuesday. / Courtesy of Hyundai Motor

Schmid also stressed that Hyundai Motor is the only company that has electric SUVs in Europe, saying it is the only brand that offers four types of green cars.

“In Europe, we have a lot of additional taxation mainly for the production of CO2, so there is strong demand for eco cars,” Schmid said. “Hyundai is investing in all segments such as hybrid, PHEV and EV, and is also a global leader in fuel cell technology which is also demanded in Northern Europe in countries such as Denmark and Norway where there is infrastructure for these cars.”

Hyundai's Ioniq has served the role as a trailblazer in the European green car market, with its hybrid, PHEV and EV models selling 22,699 cars last year, up from 4,860 in 2016. This year, the Kona Electric SUV is successfully receiving the baton, selling 470 in two months after its debut in Europe in July.

“The trend of stronger environmental regulation is really improving Hyundai as a brand,” Schmid said. “We are becoming stronger and the understanding of the market towards Hyundai is changing. We are now an innovative, high tech company. We are no longer just a value for the money car but moving into the real brand which is very hot.”