From Vietnam's VinFast to Saudi Arabia's Ceer, Emerging Nations' Domestic Car Offensives Threaten Hyundai Motor Company

The landscape of the global automotive industry is undergoing rapid reorganization. Beyond the traditional automotive powerhouses such as Japan, Germany, the United States, and South Korea, emerging nations including Vietnam, Saudi Arabia, Mexico, Brazil, Türkiye, and Morocco are stepping forward to attack the market with their own domestic automotive brands. According to a video released on the YouTube channel 'Kim Han-yong's MOCAR', these countries are threatening the positions of Hyundai Motor Company and Kia by developing electric vehicles and specialized vehicles based on their respective different strategies and infrastructures.

The Rapid Growth of Vietnam's VinFast and its Infrastructure Monopoly Strategy

The most notable change is in Vietnam. 'VinFast', operated by Vietnam's giant conglomerate Vingroup, has grown rapidly after abandoning internal combustion engines and transitioning into a pure electric vehicle company in 2022. According to the video, VinFast sold 175,000 electric vehicles in Vietnam in 2025, which is a higher number than the quantity of electric vehicles sold by Hyundai Motor Company in the South Korean market (54,000 units). Considering that the size of the Vietnamese market is about one-seventh of South Korea's, this is a very unusual achievement.

The background to VinFast's success lies in strong government support and an infrastructure monopoly centered on its subsidiaries. The Vietnamese government provides benefits such as exempting registration taxes for electric vehicles until 2030. Additionally, V-GREEN, a subsidiary of Vingroup, operates 150,000 charging ports nationwide, building a charging ecosystem focused on its own vehicles. In particular, promotions such as providing free charging costs until June 2027 are acting as powerful factors in attracting consumers to electric vehicles. Due to the strength of these domestic brands and the influx of Chinese brands (such as BYD, MG, etc.), the market share of Hyundai and Kia vehicles within Vietnam is showing a downward trend.

Saudi Arabia's Future Industry and Each Nation's Specialized Electric Vehicle Strategy

Saudi Arabia is pursuing industrial diversification and reducing its dependence on oil through the 'Saudi Vision 2030' project. The PIF has partnered with Taiwan's Foxconn to establish a domestic electric vehicle brand called 'Ceer'. It is noteworthy that during this process, the South Korean company Hyundai Transys is participating by supplying integrated systems such as motors, inverters, and reducers. Saudi Arabia has plans to build a localized ecosystem that spans from electric vehicle production to tire manufacturing by combining solar power generation and the petrochemical industry.

Other emerging nations are also presenting models tailored to their respective environments. Mexico is envisioning a low-speed electric vehicle, 'Olinia Ono', with an affordable price in the 12 million won range and a model capable of home 220V (or 110V) charging. Brazil, based on its traditional ethanol utilization capabilities, is working on developing EREV (Extended Range Electric Vehicles) that inherit 'Flex-fuel' technology, which can use both ethanol and gasoline. Meanwhile, the strategy of Türkiye's 'Togg' and Morocco's aim to enter Europe are also acting as new competitive elements for existing leaders like Hyundai Motor Company.

Ultimately, behind the entry of these emerging nations into the automotive industry, China's battery and component supply chain is providing strong support. As the scope of competition expands beyond finished vehicle manufacturing to include technology and components, Hyundai Motor Company and Kia have come to face an even more intense competitive environment worldwide.