Volkswagen Gets Surpassed Even By Hyundai

During the first three months of 2024, Hyundai Motor Group HYMTF surpassed Volkswagen Group VWAGY in terms of operating profit, taking its second place, with Toyota Group TM remaining on the global auto industry throne.

Hyundai Surpassed Volkswagen, While Toyota Fefended Its Throne

For the first quarter, the South Korean automaker reported operating profit of $5.09 billion, slightly above $4.94 billion that the German automaker reported, led by $7.15  reported by the Japanese automaker. 

With Hyundai Motor, Kia, and Genesis brands, Hyundai Motor Group has a diverse portfolio that includes internal combustion engines, EVs, as well as hydrogen-powered cars, and that is its core strength. Like Tesla Inc TSLA, Hyundai Motor has also been hit by the EV slowdown, but its EV sales have significantly grown over the years. Moreover, it continues to invest in its technical capabilities. For example, it showed interest in intellectual property of Worksport Ltd WKSP. This summer, Worksport is due to launch the world’s first solar-powered tonneau cover, SOLIS. Back in 2022, Hyundai entered into a formal agreement with Worksport to get a prototype of SOLIS for its Santa Cruz pickup, as well as a modified version of COR, a portable battery system. With this power duo, Worksport promises off-grid power on the go.

Meanwhile, Volkswagen, once the world’s biggest automaker, didn’t do much in five years since it mapped out its EV roadmap in 2019, when it seems like it had every chance to dethrone even the mighty Tesla. Volkswagen can only dream of challenging Tesla as its transformation hasn’t happened yet. To make matters worse, it got dethroned in China by the so-called Tesla killer, BYD BYDDY and also got new rivals in the world’s biggest EV market. In attempt to avoid losing the EV race, Volkswagen partnered with a local EV maker in China, Xpeng, in February. Besides developing two vehicles that will help Volkswagen expand its portfolio in China as well as attract entry and mid-level customers, XPeng and Volskwagen will also work on software and on lowering the EV cost structure. But, even XPeng is going after Europe, and it is making its entry through Germany, Volkswagen's home.

Can Volkswagen bounce back at some point is another story, but right now, it finds itself in a highly competitive pickle.

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