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In his five years, Chung Euisun has cemented Hyundai’s global top-three rank
By Kan Hyeong-woo, The Korea Herald - Hyundai
Motor Group Executive Chair Chung Euisun, having cemented the auto
conglomerate’s title of world’s third-largest carmaker, seeks to sustain growth
while weathering the storms of US tariffs and Chinese automakers' expanding
global reach.
Marking the fifth anniversary of the top
leadership appointment on Tuesday, Chung has guided the rise of Hyundai Motor,
Kia and its premium brand Genesis on the global stage over the past five years.
The three brands sold 7.23 million
vehicles last year, keeping Hyundai Motor Group's top three position in the
global automaker ranking by sales behind Toyota and Volkswagen for a third
consecutive year. Before Chung’s leadership, Hyundai Motor was ranked as the
fifth biggest automaker in 2019.
The auto brands’ combined sales and
operating profits jumped to 282.7 trillion won ($197.9 billion) and 26.91
trillion won, respectively, last year from 163.9 trillion won and 5.62 trillion
won in 2019 as the companies kept clocking in record numbers each year during
that span.
Hyundai Motors and Kia recorded 13.85
trillion won in their accumulated operating profit in the first half of this
year despite the uncertain business environment across the globe. It marked the
first time the Korean auto group logged the second-largest operating profit
behind Toyota. They combined for an 8.7 percent operating profit rate, more
than double Volkswagen’s 4.2 percent operating profit rate.
As Chung strived to make Hyundai Motor a
global frontrunner in the mobility sector, he called for a horizontal, creative
culture and demanded that workers challenge themselves relentlessly and with no
fear.
“The organizational culture you create
will be a reliable foundation for realizing unlimited possibilities,” said
Chung in a meeting with employees in Europe earlier this year.
“We will be able to achieve great
results together if we trust each other and contemplate how we can maximize
each other’s capabilities.”
According to Hyundai Motor’s internal
survey, the satisfactory scores for the company and job responsibility
increased to 78.6 points last year, up from 63.2 points in 2019, a year before
Chung took the helm of the company. Hyundai Motor and Kia also posted 0.39
percent and 0.35 percent, respectively, in terms of the voluntary turnover
rates as of last year.
Headlined by the launches of
award-winning electric vehicles such as the Hyundai Ioniq 5 and Kia EV6, the
Korean auto conglomerate has rolled out over 2 million EVs worldwide as of the
first half of this year, becoming a key player in the world’s eco-friendly car
market.
Genesis, which was led by Chung from the
start, saw its global sales surpass over 220,000 units last year, almost
tripling from 2019.
According to the business intelligence
CEO score in June this year, Hyundai Motor was the biggest contributor to
Korea’s domestic economy in 2024. This year, the auto giant has committed 24.3
trillion won to investments in Korea, with plans to create 7,200 jobs and
employ 10,000 in 2026.
“Innovation must strive for humanity,
and true progress is meaningful when it advances human life,” said Chung when
chosen as a recipient of Automotive News’ Centennial Award.
“Through customer-centered, creative and
sustainable solutions, Hyundai Motor Group will not stop its journey of
innovation towards the prosperity of humanity and the earth.”
Although Hyundai Motor moved up the
global rankings under Chung over the past five years, an auto industry expert
noted that the leadership now faces the most daunting challenges yet: US
tariffs and China’s global expansion.
“Europe and Japan got their auto tariffs
to as low as 15 percent, but Korea still has a 25 percent tariff and that is
going to cost Hyundai Motor,” said the expert. “(Hyundai Motor) is ramping up
local production in the US, but it will take time. China’s EV makers such as
BYD are bolstering their presence in various regions of the world, where
Hyundai Motor will face fiercer competition.”
