BREAKING: Hyundai Stops Developing New Combustion Engines

Industry News / 21 Comments

This will change everything.

Another automaker is making a huge step towards an all-electric future. South Korea's Hyundai Motor Group will reportedly reduce its number of combustion-engined vehicles by 50 percent in the coming few years, according to Reuters who confirmed the plan with two inside sources. The decision to cut half of its fossil fuel-producing passenger vehicles was apparently made in March and an official announcement should be coming soon. In January, the automaker confirmed it was finished developing new diesels.

"It is an important business move, which first and foremost allows the release of R&D resources to focus on the rest: electric motors, batteries, fuel cells," the person said, without giving a precise timeframe for the plan.

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To be clear, Hyundai isn't fully eliminating combustion engines from its lineup just yet. That's slated to happen by 2040. But over the next few years, we're going to be seeing a general reduction of pure ICE models in favor of more battery-electric and hydrogen fuel-cell models.

The Hyundai Ioniq 5 EV is just the beginning and next year the Ioniq 6 will debut followed by the Ioniq 7 three-row SUV in 2024. This decision affects the entire Hyundai Motor Group that consists of the namesake Hyundai brand along with Kia and Genesis. The latter two have already begun their respective EV model introduction with the EV6 and Electrified G80, respectively.

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Hyundai sees the writing on the wall as global governments, including those in the key markets of the United States and China, continue to clamp down on C02 emissions. The source also confirmed that "Hyundai has stopped developing powertrains for internal combustion engine cars."

It's not exactly a big surprise this is happening because any new powertrain has billions of dollars in R&D costs; why bother spending the money on a technology that's on its way out? Instead, Hyundai has its new dedicated electric vehicle platform, called e-GMP. The Ioniq models and the EV6 already utilize it and plenty more will follow.

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Source Credits: Reuters

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