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Taking the ‘Toyota Way,’ Hyundai pushes hybrids across the board

New Palisade to be hybridized

Hyundai Motor Company is embarking on a so-called “Toyota-style” hybridization of its entire lineup (passenger cars included). Japanese automaker Toyota offers both internal combustion engines and hybrid vehicles, and Hyundai believes that the more people experience hybrids, where electric power supports the internal combustion engine, the faster the transition to electrification will occur. As part of this plan, the Palisade, which has only sold internal combustion engines such as gasoline and diesel, will add a hybrid to its lineup.

The second-generation Palisade, which is being developed for mass production in January 2025, will have both internal combustion engines and hybrids, according to the auto industry. Hyundai recently held final trials for the second-generation model and set a production schedule. It is expected that a test car will be built in the second half of this year for various tests.

Hyundai Palisade./Courtesy of Hyundai Motor Company

The Palisade is Hyundai’s top-selling sport utility vehicle (SUV) in Korea. Exports are also significant, with more than 100,000 units sold overseas last year. Hyundai plans to mass-produce the second-generation product for domestic consumption in 2025, followed by export production in April of the same year, and export to North America in June.

The new Palisade is expected to come with a hybrid powertrain that combines a 2.5L gasoline turbocharged engine with an electric motor that Hyundai is developing. It will be more powerful than the current 1.6L gasoline turbo hybrid powertrain. It produces upwards of 280 horsepower and is mated to a Hyundai Transys-developed eight-speed automatic토토사이트 transmission for the hybrid. The existing 3.8L gasoline engine is expected to be replaced by a 3.5L gasoline turbo.

The addition of the hybrid to the Palisade will make Hyundai’s entire lineup hybridized. Hybrids have replaced diesel engines in sedans like the Avante, Sonata, and Grandeur, and SUVs like the Kona, Tucson, and Santa Fe. The Palisade, a large SUV, has been criticized for being slow to electrify, selling only internal combustion engines.

Toyota’s strategy is both similar and slightly different. Toyota’s hybrids are its mainstay, while Hyundai is looking to them as a bridge to the EV era. Toyota has been relatively slow to transition to EVs.

“Hyundai’s ultimate goal is to be a strong player in pure EV technology,” said Jose Muñoz, Hyundai’s chief operating officer. “To be a key player in the electrification strategy, we need to be strong in hybrids because consumers who buy hybrids easily move to EVs later.”

Hyundai is also pursuing an all-electric strategy. According to the company’s mid- to long-term strategy, Hyundai plans to build a lineup of more than 17 electric vehicles (including Genesis) by 2030. This will increase the share of EVs in the Hyundai-Genesis fleet from 4% last year to 17% in 2026 and 36% in 2030. In addition, starting in 2025, Genesis will be fully electrified, reaching 100% electrification by 2030. In addition, the company aims to electrify 100% of its European sales by 2035 and 100% of its major markets by 2040.

To achieve its goals, Hyundai has prepared strategies such as expanding production in regions with concentrated demand for electric vehicles, promoting a comprehensive battery strategy, and strengthening the productivity of electric vehicles. In addition, Hyundai will introduce eM, a platform for passenger electric vehicles, and eS, a platform for purpose-built vehicles (PBVs), in 2025, and invest KRW 19.4 trillion in electrification by 2030.

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