Hyundai Motor Co (OTC: HYMTF) announced the launch of a brand dedicated to battery electric cars on Sunday.
What happened: The motorist plans to sell one million units of battery-electric cars by 2025, occupying 10% of the global market share, in an effort to act as a leader in the segment under its dedicated EV brand “Ioniq.”
Three electric cars under the Ioniq brand will be released in early 2021, according to Hyundai. Launch of a midsize crossover car in early 2021, a sedan in early 2022, and a large crossover car in early 2024 is planned.
Nikola wants Coopearte: Trevor Milton, CEO of Nikola Corporation (NASDAQ: NKLA), revealed its intention to collaborate with Hyundai in an interview with local Korean media on Sunday, Reuters reported.
Milton said he had twice proposed collaborations with the Seoul-based automaker, which reduced his efforts both times.
A threat to Tesla’s rise: EV rival Tesla Inc (NASDAQ: TSLA) has seen an impressive increase in business in South Korea, and became a dominant player on the back of Model 3 sales.
The Elon Musk-led company sold 2,827 cars in the country in June, with another 4,000-5,000 pending delivery. The Model X cars are also said to be gaining momentum, according to Reuters.
EV Sector Growth in South Korea: SK Securities analyst Kwon Soon-woo told Reuters that the rise in shares of Hyundai on Monday reflected “investors’ hope that the auto industry will perform better compared to other industries.”
Korean battery makers like LG Chem Ltd (OTC: LGCLF), Samsung Electronics Co. Ltd. (OTC: SSNLF) unit Samsung SDI Co., and SK Innovation Co. dominated battery deliveries worldwide in the first half of this year, according to SNE Research.
Price action
Hyundai shares traded 10.54% higher on Monday at $ 136.86 at press time in Seoul. The company’s shares closed 4.67% on Friday at $ 31.39 in the otc market.
Photo courtesy: Hyundai Motor Co.
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