As an electric vehicle (EV) enthusiast, you likely admire Tesla‘s pioneering work in making sleek, high-tech EVs desirable for the masses. What started with the splashy Roadster sports car is today a full range of bestselling luxury EVs, cementing Tesla as the poster child for our sustainable transport future.
But here‘s an intriguing question – could Hyundai, known more for affordable sedans, actually evolve into a equally formidable EV maker that rivals Tesla‘s technical prowess in years ahead? Let‘s analyze the Korean giant‘s budding EV lineup and strategy to find out!
Over 30 Years in the Making
Most reviews focused on the fun, futuristic styling or fast-charging speeds of Hyundai‘s recent EV models, the Ioniq 5 and 6. But the roots of their surprisingly sophisticated engineering date further back – to 1991, years before Tesla existed!
Back then Hyundai was already workshopping early electric sedan prototypes to gauge viability. These weren‘t production variants but technology demonstrators to test motors, batteries and electronic control systems.
Hyundai‘s first EV test prototype from 1991, the Elcit, sported curvy late 80s style [Source: Hyundai]
While the sedan prototype managed just 75 km (44 miles) per charge – a fifth of today‘s EVs – it kicked off an R&D journey spanning decades at Hyundai.
Engineers iterated EV experiments throughout the 90s, gaining valuable hands-on learnings even as limitations of then battery tech made EVs impractical for production. Some later test mules achieved over 150 miles of range and a 87 mph top speed – extremely impressive for mid 90s technology!
Hyundai continued testing advanced EV prototypes in partnership with local universities through the 1990s before market conditions were ready [Source: Hyundai]
So by the 2010s when lithium-ion costs finally fell enough to enable mass market EVs, Hyundai had already built up extensive institutional expertise. This gave them a strategic edge against rivals just starting out.
When they launched the dedicated Ioniq EV sub-brand in 2020, the stage was perfectly set for some seriously competitive products…
The Ioniq 5 Goes Global
In February 2021, Hyundai took the wraps off the first model under its new Ioniq brand – the aptly named Ioniq 5 midsize crossover.
This funkily futuristic vehicle grabbed eyeballs and car awards in equal measure over the next year. By January 2022, the Ioniq 5 incredibly became Europe‘s bestselling EV model, beating even the likes of Tesla!
So what exactly caused this Hyundai EV to take the industry by storm?
For starters, the Etch-a-Sketch angular styling struck a balance between novel and elegant that really connected across age groups. The minimalistic, tech-forward cabin furthered the appeal. Reviewers described entering a lounge-like "accessible spaceship" rather than typical car interior.
The Ioniq 5‘s multi-layered exterior contrasts nicely with its cozy yet modern cabin; carbuyer reactions were overwhelmingly positive [Source: Hyundai]
Of course, metrics also matter for EVs aiming to woo traditional auto buyers. Here too the Ioniq 5 delivered:
| Specs | Ioniq 5 Long Range AWD | Tesla Model Y AWD Long Range |
|---|---|---|
| Range (mileage) | 303 | 326 |
| Acceleration 0-60 | 5.2 seconds | 4.8 seconds |
| Top speed (mph) | 115 | 135 |
| Price | $47,150 | $62,990 |
With ample 300+ mile range, sub 5-second acceleration, 800V ultra-fast charging and five-star safety ratings, the high-tech Ioniq 5 matched or exceeded Model Y‘s capabilities at 25% lower cost!
Clearly the fruits of long years EV development were paying off for Hyundai. But the Ioniq 5 was just the start…
Bring on the Ioniq 6!
In this golden age of auto electrification, no manufacturer can afford to rest on their laurels for long. Enter Hyundai‘s second volley – the sleek upcoming Ioniq 6 sedan.
Teased in camouflaged form in early 2022 and expected to unveil fully very soon, the production model isn‘t radically different from 2021‘s gorgeous Prophecy concept.
This suggests the brand is retaining much of concept‘s dreamy flowing lines and pixelated rear in production form. Given the overwhelmingly positive response to last year‘s preview, that is undoubtedly a smart move to stand out against Tesla‘s more conventional Model 3 design.
Although full details remain under wraps, early estimates point to a 60 kWh battery achieving around 380 miles range. That handily beats the Long Range Model 3‘s current 351 mile claim. Leaked specs also indicate support for 350 kW charging – translating to hyper-fast charging up to 80% in under 15 minutes!
Of course Tesla won‘t settle for second-best either. Their next-gen 4680 battery cell promises step-change enhancements coming to the refreshed Model 3 range too. But if Elon‘s team was expecting an easy victory lap here on out, Hyundai‘s aggressive product cadence surely warrants some attention.
Contenders Become Champions?
Based on the split of current consumer perceptions, Hyundai clearly remains an underdog versus the mighty Tesla juggernaut. But the long EV journey shows how committed they are for the long haul:
| Year | Tesla | Hyundai |
|---|---|---|
| 2003 | Tesla founded | – |
| 2008 | Original Roadster launched | BlueOn EV prototype |
| 2012 | Model S sedan unveiled | BlueOn taxi field testing |
| 2014 | Wireless charging and autopilot trials | Hybrid tech partnerships |
| 2016 | Model 3 production plan | 28 km Ioniq Electric launched |
| 2019 | Model Y CUV unveiled | – |
| 2022 | 4680 cell battery manufacturing | Ioniq 5 becomes bestseller |
Where Tesla moved fast and broke things from the get-go, Hyundai adopted a slow, steady approach. But that may pay off nicely as EV volumes start taking off globally this decade.
Indeed, Hyundai is already committing $7.4 billion towards electrification through 2030, targeting over 1.7 million EV sales worldwide annually by then. Such large numbers could well make them the highest volume EV maker globally through the late 2020s.
Augmenting their ambitious roadmap is the Hyundai Group‘s expansive production expertise spanning mass market and luxury vehicles. Leveraging shared resources and learnings across the Kia, Genesis and Ioniq sub-brands should rapidly enhance economies of scale and scope.
As ARK Invest analyst Tasha Keeney summarized in a 2021 research note:
"Hyundai stands out with competence across the EV supply chain: software, semiconductors, batteries, charging infrastructure, and now a dedicated BEV platform. These attributes make it best positioned to compete with Tesla in the global electric vehicle market over the next five years."
Gearing Up For An All-Electric Future
In the past I would have bet my money on Tesla leading global EV volumes by 2025. But Hyundai‘s relentless execution over the last 3 years – capped by the fantastic Ioniq 5 debut – forces a rethink.
Make no mistake – Elon Musk‘s charging juggernaut still retains key competencies in drivetrains, connected software and direct sales. Coupled with their daring approach to innovation, Tesla should continue trailblazing advancements EVs can benefit from.
Yet as EV adoption spreads beyond early adopters to mainstream buyers, Hyundai‘s strengths come to the fore. Their mastery of pragmatic engineering, quality manufacturing and extensive dealer networks now position the Ioniq brand well to capture volume sales across vehicle segments.
Much like Toyota overtook the early US car startups over decades to become a global leader, Hyundai seems to follow a similar path on EV home turf. And with kindred Korean rival Kia replicating the playbook in parallel, we may well live in Hyundai-Kia‘s electric era by the next decade!
Of course other players like VW Group and Japan Inc won‘t be standing still either through the 20s. But as battery costs keep trending downwards, there should be room for multiple EV winners rather than a single dominant force. Just like smartphones, consumer preferences and use cases can be diverse enough to sustain various brands in leadership positions.
As market horizons continue expanding exponentially this decade, even more differentiated electric models serving unmet needs will surely arise…from expected quarters and unexpected underdogs!
