In 2024, Hyundai Motor Group is focusing its business on transitioning to Purpose-Built Vehicles (PBVs) and Software-Defined Vehicles (SDVs).
Hyundai Motor Group’s PBV strategy takes its first step with Kia unveiling its PBV lineup at the Consumer Electronics Show (CES) 2024, after a five-year hiatus. At this CES, Kia will reveal a lineup of five PBVs, including three medium-sized, one large, and one small concept car.
PBVs represent a new growth engine not only for Hyundai Motor Group but also for global automobile manufacturers. This approach involves producing vehicles with body sizes and driving performances tailored to the customer’s needs, using an electric vehicle platform adaptable for various types of vehicles. An example is Rivian, a U.S. automaker producing electric vans for the online shopping company Amazon.
Kia is building the world’s first PBV-dedicated factory, the EVO Plant, in Autoland Hwaseong. Operations are set to begin in November 2024, with the plan to produce the first PBV, named SW, by July 2025. Kia is also advancing into this business by naming its vehicle purpose conversion technology Easy Swap.
According to Kia, this technology involves changing modules according to use, such as transforming a taxi into a delivery-specific mobility. The new factory will likely adopt the Cell-based multi-model flexible production system recently revealed at the Singapore Global Innovation Center (HMGIC).
Regarding SDVs, the focus is on transitioning to software-centric vehicle development. Chung Eui-sun, chairman of Hyundai Motor Group, declared in the New Year’s meeting in January 2023 that “by 2025, the company’s entire system will transition to software-centric.” This transition is led by 42dot, a vehicle software company acquired by Hyundai Motor Group in August last year.
42dot is participating in CES for the first time, where it will introduce its SDV Operating System (OS) solution. Unlike the traditional approach of adding software like infotainment to vehicle hardware, this concept involves separately developing the vehicle’s software OS from the hardware, like in smartphone development, reducing the cycle for enhancing vehicle performance and adding new features.