Hyundai might lead the global EV market in future

As per some recent pieces of information, the South Korean tech giant is aiming to empower itself in the EV segment. Along with several other South Korean lead companies like SK, LG, and Samsung are joining hands with Hyundai Motor Group in order to create a new coalition. Given this agreement, the Hyundai and Kia EVs will feature autonomous-driving semiconductors developed by Samsung, OLED instrument panels manufactured by LG Display, and batteries made by SK.

South Korean companies are eager to advance and upscale EV technologies. Several companies like Samsung Electronics, Samsung Electro-Mechanics, Samsung SDI, SK, and various LG affiliates are making their efforts for it. Recently, Samsung has partnered with Volkswagen and Audi. Undoubtedly, Samsung is now considered one of the top EV battery manufacturers worldwide.

Hyundai Motor Group appears to want to assure a robust domestic supply chain for electric and autonomous vehicle components. We are aware that EVs have become more popular and the competition is gearing up. According to a business representative quoted by The Korea Times, “Synergy effects are expected to occur through collaborations among domestic companies. Such an alliance will have a significant impact on the development of the domestic industry.”

If we go by this information and assume it is correct, then all members of this partnership will have equal chances of growth given the market growth. Hyundai Motor Group will enjoy the benefits of domestic suppliers. It will have a chance to better carry out the management of the supply chain, reduce shipping costs, and more. Given the fact that SK, LG, and Samsung are the top EV component suppliers worldwide, such a partnership will give Hyundai Motor Group the upper hand in contrast to its rivals in the international EV car segment.

Samsung and other domestic IT behemoths may band together to assist Hyundai in overtaking Tesla as the world’s leading EV manufacturer. At the absolute least, this purported coalition would position Hyundai in a way that may enable the business to become fiercely competitive in the international EV market.