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Hyundai to launch AI-powered EV in China next year
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Hyundai is preparing to launch its first dedicated electric vehicle for the Chinese market in 2025, featuring advanced AI capabilities through a partnership with Chinese autonomous driving startup Haomo, as the Korean automaker seeks to regain market share in the world’s largest EV market.

Strategic market entry: Hyundai’s new AI-powered EV represents a crucial attempt to revitalize its presence in China, where its market share has declined to just 1.2% through September 2024.

  • The vehicle will be equipped with Haomo’s DriveGPT system, which uses generative AI to optimize driving decisions through real-time traffic data analysis
  • The autonomous driving capability will rank between level 2 and 2.5 on the SAE scale, similar to Tesla’s Autopilot system which requires driver attention and hands on the wheel
  • This model will be the first of five new EVs Hyundai plans to launch in China through 2026

Market dynamics and competition: China’s EV market continues to show remarkable growth, with domestic manufacturers maintaining a strong advantage over foreign competitors.

  • Chinese EV sales reached 1.2 million units in October 2024, marking a 50% increase from the previous year
  • BYD dominates the market with a 32.9% share of new energy vehicle (NEV) sales, while Tesla holds 6.5%
  • Total EV sales in China reached 8.4 million units in the first ten months of 2024, representing a 38% year-over-year increase

Strategic partnerships: Hyundai is leveraging local expertise to enhance its competitive position in China.

  • The company recently opened its first overseas digital R&D center in China
  • Partnerships with local tech companies including Thundersoft for smart cockpit technology demonstrate Hyundai’s commitment to localization
  • Haomo’s DriveGPT system is already implemented in approximately 20 vehicle models across China

Looking ahead: While Hyundai’s AI-powered EV launch marks an important strategic shift, the company faces significant challenges in competing with established domestic manufacturers who benefit from strong brand recognition and competitive pricing in the Chinese market.

Hyundai is launching an AI-powered EV next year to keep pace in China

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