Hyundai Motor Group Targets 40% Annual Growth in PBV Market… "Half Will Be PBVs in 20 Years"

[Financial News] Amid reports that global commercial electric vehicle sales have increased by 40% compared to the previous year, the entire Hyundai Motor Group is launching new cars and expanding production bases to preempt the commercial electric vehicle and purpose-built vehicle (PBV) markets.
According to the 'Global Commercial Electric Vehicle and PBV Market Trends' report released by the Korea Automobile Mobility Industry Association (KAMA) on the 16th, global commercial electric vehicle sales in 2024 are estimated to have increased by 40% year-on-year to 660,000 units.
The commercial electric vehicle market has grown more significantly than the overall electric vehicle market, and Hyundai Motor Group is accelerating its efforts to preempt the commercial electric vehicle and PBV markets.
Currently, the growth of global commercial electric vehicles and PBVs is being led by China and the United States. China recorded 450,000 units, a 90% increase compared to the previous year, while the United States recorded about 25,000 units, a 55% increase.
The expansion of global PBV demand is analyzed to be due to the reduction of carbon emissions within cities and the effect of reducing total ownership costs. Considering financial incentives such as electric vehicle subsidies and various tax benefits, it is said to be cheaper than internal combustion engines.
Global logistics companies such as Amazon and Walmart are also leading the expansion of demand by introducing electric vans in large numbers. The ability to provide customized transportation means for the elderly, children, and the disabled is also cited as an advantage.
However, the Korean commercial electric vehicle market showed a different trend from the global trend, showing negative growth. Although it grew at an average annual rate of 26% with about 27,000 units in 2021, about 38,000 units in 2022, and about 43,000 units in 2023, it decreased by 52% year-on-year to 21,000 units last year due to the electric vehicle chasm (temporary demand slowdown) and increased demand for LPG vehicles.
Kia is launching new cars and expanding production bases to preempt the commercial electric vehicle and PBV markets. This month, it will launch the PV5 and fully operate a dedicated PBV factory within the year. Kia is building a dedicated PBV factory capable of producing 150,000 units annually in Autoland, Hwaseong, Gyeonggi-do, aiming for mass production in 2025.



Hyundai Motor also launched the 2026 model 'ST1' on this day. The ST1 is designed based on a modular commercial platform, allowing flexible use for various purposes such as logistics delivery.
Professor Kim Pil-soo of Daelim University said, "PBV has great potential for market expansion as it can flexibly produce various models from a single platform," adding, "If supported by the government's subsidy policy, half of all vehicles could be converted to PBVs within 20 years."
Professor Kim added, "PBV is a foundry concept of consignment production, so securing technology is key," adding, "(Kia's investment) is a strategic investment for future food sources."

security@fnnews.com Park Kyung-ho Reporter