IAA 2025 Hyundai Motor to overcome Europe’s toughening regulation with 'multi-energy' strategy

Hyundai Motor Europe CEO Xavier Martinet poses with the carmaker’s Concept THREE, a prototype of its first all-electric hatchback, at a booth set up at the German street of Ludwigstrasse on the sidelines of IAA Mobility 2025 in Munich, Tuesday (local time). Korea Times photo by Lee Min-hyung

MUNICH — Hyundai Motor seeks to overcome Europe’s toughening auto regulation by launching a full-fledged multi-energy vehicle lineup, Xavier Martinet, head of the carmaker’s European business, said during a media interview, Tuesday.

The remark came amid growing pessimism over the sales of internal combustion engine vehicles in Europe. This year, the European Union introduced a rule mandating that any new cars registered in the region should emit 15 percent less carbon dioxide from the 2021 figure.

“In 2025, there is a summarized target in terms of the carbon reductions for all carmakers in Europe and this has an impact on the market,” he told reporters on the sidelines of this year’s IAA Mobility fair.

The toughening regulatory outlook, however, will come as a major opportunity for the carmaker to expand its sales for eco-friendly cars in Europe, according to him.

“Our market share is stable so far in Europe,” he said. “We have a market share of 3.8 percent in Europe and we believe we will be able to gain more share in the next few years with planned launches of new models.”

The strategy will be powered by the firm’s multi-energy vehicles, which include hybrids, plug-in hybrids, electric vehicles (EVs) and even cars with a hydrogen powertrain.

EVs account for some 17.5 percent out of the total auto market in Europe. Against that backdrop, Hyundai Motor will maintain its dual-growth strategy for EVs and hybrids until EVs become mainstream in the region, Martinet said.

The executive shared the vision shortly after the carmaker made the world premiere of the Concept THREE, a prototype electric hatchback, at the auto fair. Set to become the smallest IONIQ model in production, the vehicle reflects Hyundai Motor’s strategy to grow EV sales in Europe by catering to local drivers’ preference for hatchbacks and eco-friendly vehicles.

“EVs are fundamental because I would say that our iconic IONIQ brand really played a massive role in changing our position in Europe,” he said.

“About 15 years ago, people were buying our cars in Europe because they were affordable, but now they are buying Hyundai vehicles because of their great design and advanced technology. We are also offering a great customer experience in sales and after-sales, so I think it is really a great fundamental step into moving forward.”