Hyundai Motor Group said on Wednesday that it will introduce an electric vehicle-only platform early next year that will use its own battery technology to cut production time and costs.

The plan underscores efforts by the world’s fifth largest automotive group to become a major player in the global EV market, as car makers around the world are pouring billions of dollars of investment to improve battery technology, which keeps EV prices high compared to combustion engine models.

Market leader Tesla said in September it aims to halve the cost of its EV batteries and bring more production of the key auto component in-house to lower EV prices to US$25 000 (R380 000) each.

Hyundai expects its dedicated Electric Global Modular Platform (E-GMP) will allow it to use its own battery module technology across various EV models and cut the number of components by 60%.

“E-GMP will be highly effective in expanding the group’s EV leadership position as it will enable the company to enlarge its EV line-up over a relatively short period through modularisation and standardisation,” it said in a statement.

A million EVs

An electric vehicle based on E-GMP will offer driving range of 500km or more on a single charge, an improvement of at least 23% from the Kona EV, the longest-driving-range model among Hyundai’s EV line-up.

Hyundai Motor and its sister company Kia Motors together aim to sell a million EVs in 2025 to become the world’s third largest seller of electric cars.

It has promised 23 new EVs including 11 all-electric models by 2025 and plans to introduce a family of EVs under the Ioniq brand from early next year to spearhead its near-term transition toward EV production. — Reported by Heekyong Yang, (c) 2020 Reuters