SEOUL / SÃO PAULO — Euisun Chung, Executive Chair of Hyundai Motor Group, has reaffirmed Brazil’s critical role as the cornerstone of the company’s Latin American strategy. Facing an aggressive push from Chinese automaker rivals and a rapid global transition toward eco-friendly mobility, Chung personally visited Hyundai’s key facilities in Brazil to review research and development (R&D) initiatives, evaluate production operations, and chart a path for sustainable long-term growth.

"Brazil is an extraordinarily important market for Hyundai’s global business," said Executive Chair Euisun Chung during his visit. "While we face various challenges driven by shifting industrial dynamics and heightened competition, overcoming this crisis is essential for our next phase of growth. Hyundai Motor Group will actively support our local operations to achieve an even greater leap forward."

Strategic On-Site Review Amid Presidential Diplomacy

Chung’s visit to Hyundai Motor Brasil’s (HMB) manufacturing hub in Piracicaba, São Paulo, took place alongside a official presidential state visit to Brazil. Demonstrating a hands-on leadership approach despite a packed schedule, Chung prioritized inspecting the company’s local competitiveness, green mobility strategy, and nascent hydrogen business ecosystem.

The visit began at the Central and South America R&D Center, where Chung engaged directly with local engineers and researchers. He urged the team to deepen local R&D capabilities and accelerate the localization of advanced powertrains tailored specifically to Latin American driving conditions and fuel availability.

Following the R&D tour, Chung inspected the assembly lines, paying special attention to the quality control of the newly launched i20 hatchback and the updated Creta SUV—a perennial top-seller in the region. He also commended HMB employees on surpassing the 2.5 million unit cumulative production milestone earlier this year, a historic achievement reached just 13 years after the Piracicaba plant began operations in 2012.

Expanding the Eco-Friendly & Hydrogen Footprint

Hyundai Motor Group’s broader roadmap envisions Brazil as an integrated hub for green mobility and energy solutions. To maintain its competitive edge, the automaker is pursuing several targeted initiatives:

Flex-Fuel Hybrids (FFV-HEV): Accelerating the development of ethanol-gasoline hybrid powertrains tailored specifically to Brazil’s unique bio-ethanol market infrastructure.
Compact EV Production: Evaluating feasibility for local production of entry-level electric vehicles to capture early-adopter urban segments.
Hydrogen Ecosystem Development: Partnering across Hyundai Group affiliates to introduce hydrogen-powered commercial vehicles and trams, explore green hydrogen production, and supply fuel cell systems.
Academic Partnerships: Expanding research collaborations with leading regional institutions, including the University of São Paulo (USP), to cultivate local engineering talent and establish a foundation for long-term innovation.

Navigating Chinese Competition in a Resource-Rich Market

Brazil represents the world’s sixth-largest automotive market (with annual sales around 2.5 million vehicles) and the eighth-largest producer globally. Beyond sales volume, Brazil boasts critical strategic value in global supply chains as the holder of the world’s second-largest rare earth reserves and over 20% of global graphite deposits—key inputs for electric vehicle battery chemistry and renewable energy technologies.

This high-stakes environment has drawn heavy investment from Chinese automakers like BYD and GWM, which are establishing local manufacturing footprints and leveraging competitive pricing to capture market share. According to data from the China-Brazil Business Council (CBBC), Chinese foreign direct investment in Brazil surged 45% year-over-year, reaching $6.1 billion—much of it concentrated in energy and automotive sectors.

Despite this intensifying rivalry, Hyundai continues to perform strongly in the region:

H1 Performance: According to the National Federation of Automotive Vehicle Distribution (FENABRAVE), Hyundai sold 96,723 units in Brazil during the first half of the year, marking its best first-half performance since 2019.
Market Position: Hyundai maintained a solid 7.1% market share, securing 5th place among all automotive brands in the country.
SUV Leadership: The Hyundai Creta claimed the #1 spot in retail SUV sales across Brazilian dealerships in H1.
2026 Sales Target: Bolstered by the rollout of the new i20, Hyundai has set a full-year Brazilian sales target of 204,000 units.
By reinforcing its core manufacturing efficiency, doubling down on localized green powertrains, and laying the groundwork for hydrogen energy systems, Hyundai Motor Group aims to turn regional competitive pressures into a catalyst for long-term transformation in Latin America.