Market Overview

Hyundai Chooses An Unusual Site To Build Electric Vehicles — Singapore

Hyundai Chooses An Unusual Site To Build Electric Vehicles — Singapore

Hyundai Motor Company (OTC: HYMTF) began building a research and development center in Singapore Tuesday where it intends to produce small-scale electric vehicles, Reuters reported Tuesday.

What Happened: The Korean automaker’s facility, being brought up with a $295 million investment, may produce up to 30,000 EVs per year by 2025, Singapore Prime Minister Lee Hsien Loong said at the groundbreaking ceremony, as per Reuters.

“Automotive activities are becoming viable in Singapore once again. EVs have a different supply chain, fewer mechanical parts and more electronics, which plays to Singapore’s strengths,” the prime minister said.

A Hyundai spokesperson told Reuters that the exact capacity of the plant is yet to be determined but confirmed Lee’s stated 30,000 EV unit target.

Why It Matters: Singapore does not manufacture cars and has a plan to phase out gasoline vehicles by 2040. It is also the most expensive place in the world to buy cars, noted Reuters.

The upcoming plant targets carbon neutrality, as Hyundai plans to use solar and hydrogen energy in making vehicles, the company told Reuters.

In August, Hyundai announced it was setting up a dedicated EV brand dubbed “Ioniq” with vehicles rolling out of factories by 2021 and planned to sell one million battery-electric vehicles by 2025.

Small EVs are gaining ground in Asia. General Motors Company (NYSE: GM) saw a rise in quarterly sales in China for the first time in two years with a two-door minivan leading EV sales.

Tesla Inc (NASDAQ: TSLA) is planning on exporting vehicles made in China to Singapore and other countries, Bloomberg reported in September.

The Elon Musk-led company delivered 139,300 vehicles globally in Q3 2020, representing a 53.67% growth on a quarter-on-quarter basis.

The U.S. company’s Chinese rivals are giving it a stiff competition. Morgan Stanley analyst Adam Jones predicted that it faces total wipeout in China by 2030.

Price Action: Hyundai OTC shares closed 1.08% lower at $36 on Monday.

Photo courtesy: Hyundai


Related Articles (HYMTF)

View Comments and Join the Discussion!

Posted-In: electric vehicles EVs SingaporeNews Global Tech Best of Benzinga