Hyundai Motor Co. will launch its first electric vehicle designed exclusively for the Chinese market in September, representing a high-stakes attempt to revive the South Korean automaker’s fortunes in the world’s largest automotive market.
The Elexio SUV marks the inaugural model in Hyundai’s plan to introduce six localized electric vehicles by 2027. The vehicle will be manufactured through Beijing Hyundai, the company’s joint venture with BAIC Motor, as part of what executives have termed “In China, for China, to the World” strategy.
The launch comes as Hyundai faces an existential challenge in China, where its annual sales collapsed from 1.16 million vehicles in 2016 to just 151,000 units in 2024. The dramatic decline forced the company to close two of its five Chinese factories since 2021 and sell its Chongqing plant for $230 million in 2024.
While Beijing Hyundai reported losses narrowed to 42.3 billion won ($30 million) in the first quarter of 2025 from 146 billion won ($105 million) a year earlier, the company remains unprofitable in China despite investing 8 billion yuan ($1.1 billion) to revamp operations.
The Elexio will compete against dominant Chinese brands like BYD in a market where domestic manufacturers have captured the majority of electric vehicle sales through aggressive pricing and advanced technology integration.
