Hyundai Motor chief doubles down on Brazil

Hyundai Motor Group Executive Chair Chung Euisun speaks as he inspects the carmaker’s Brazil manufacturing facility in Piracicaba, Sao Paulo, Monday. Courtesy of Hyundai Motor Group

Hyundai Motor Group Executive Chair Chung Euisun has reaffirmed Brazil's strategic importance to the automaker's long-term global expansion, pledging to garner group-wide support for another major milestone in the country.

He outlined plans to strengthen the company's position through localized electrification, a broader SUV lineup and future hydrogen businesses, as competition intensifies in South America's largest automotive market.

Chung visited Hyundai Motor's manufacturing plant in Piracicaba, Sao Paulo, Monday, while accompanying the Korean business delegation during President Lee Jae Myung's state visit to Brazil.

The separate stop underscored Hyundai's intention to reinforce its presence in one of its most important overseas production hubs amid rapid changes in the country's automotive industry.

Brazil has emerged as a key pillar of the carmaker’s South American operations, housing both its regional headquarters and manufacturing facility.

Hyundai Motor Group Executive Chair Chung Euisun inspects the carmaker’s Brazil manufacturing facility in Piracicaba, Sao Paulo, Monday. Courtesy of Hyundai Motor Group

Since opening in 2012, the plant has reached an annual production capacity of 200,000 vehicles.

The visit comes as Brazil gains increasing strategic importance beyond vehicle sales. The country is the world's sixth-largest automobile market, with annual demand for roughly 2.5 million vehicles.

The country is also a major supplier of critical minerals, holding the world's second-largest rare earth reserves and more than one-fifth of global graphite deposits, strengthening its role in electric vehicle (EV) battery and renewable energy supply chains.

During his visit, Chung inspected the group's Latin America R&D Center, established in 2016, and called for greater localization of research and powertrain development.

"To secure sustainable long-term competitiveness, we must strengthen local R&D capabilities and accelerate localization of powertrain development," Chung told researchers.

He later toured the carmaker’s production lines for the recently launched the i20 hatchback and the Creta SUV and congratulated employees on surpassing cumulative production of 2.5 million vehicles.

Hyundai Motor Group Executive Chair Chung Euisun, front left, is briefed during an inspection of the carmaker’s Brazil manufacturing facility in Piracicaba, Sao Paulo, Monday. Courtesy of Hyundai Motor Group

"Reaching 2.5 million units in just 13 years reflects the dedication and teamwork of our employees," Chung said. "Brazil remains one of Hyundai's most important global markets, and I sincerely appreciate everything our local workforce has accomplished."

The Piracicaba plant currently manufactures the HB20 subcompact vehicle, Creta and the i20, all tailored for Brazilian consumers.

Hyundai Motor views the i20, which entered production in June, as a key growth driver in the country's highly competitive B-segment, the second-largest passenger vehicle category by market demand in Brazil. Vehicles classified into the segment include mostly compact cars.

The i20 is designed to deliver SUV-like interior space and advanced safety features. Hyundai Motor expects the model to strengthen its position in Brazil alongside the HB20.

To support sales, Hyundai plans partnerships across the travel, retail, entertainment and fitness industries, offering customers integrated experiences ranging from vehicle test drives to subscription services and travel promotions.

Looking further ahead, Hyundai will expand its SUV portfolio, pursue localized production of electrified vehicles and accelerate development of hybrid models powered by Brazil's ethanol-gasoline fuel mix.

The company intends to introduce flexible-fuel hybrid SUVs tailored specifically for the Brazilian market and seek local production of compact EVs.

Hyundai Motor Group Executive Chair Chung Euisun, center, inspects the carmaker’s Brazil manufacturing facility in Piracicaba, Sao Paulo, Monday. Courtesy of Hyundai Motor Group

The carmaker is also positioning Brazil as a future hub for hydrogen mobility and renewable energy.

Leveraging the group's fuel-cell technology, Hyundai Motor Group plans to develop businesses spanning hydrogen production, distribution and utilization, while pursuing opportunities in hydrogen commercial vehicles, trams, fuel-cell systems and renewable power generation.

The company is also seeking to expand research partnerships with Brazilian universities, including the University of Sao Paulo.

Hyundai's business momentum has remained solid despite intensifying competition in the Brazilian market.

According to Brazil's National Federation of Motor Vehicle Distribution, the carmaker sold 96,723 vehicles in the first half, up 12.1 percent from a year earlier and marking its strongest first-half performance since 2019.

The HB20 and Creta continued to lead sales, helping the carmaker secure a 7.1 percent market share and maintain its position as Brazil's fifth-largest auto brand.