"Brazil Is a Very Important Market"... Euisun Chung Reviews Growth Strategy in the World's Sixth-Largest Automotive Market

Visited as Part of Economic Delegation for Presidential State Visit to Brazil
Reviewed Production and Sales Strategy at Hyundai’s Sao Paulo Plant

"Brazil Is a Vital Market for Hyundai’s Global Operations"
Brazil Plant Surpasses 2.5 Mill

Euisun Chung, Executive Chair of Hyundai Motor Group, visited Brazil to personally review the group's mid- to long-term growth strategies for advancing into the Latin American market. As Chinese automakers ramp up their presence in Brazil, the world’s sixth-largest automobile market, Hyundai aims to secure future competitiveness by fostering locally tailored eco-friendly vehicles and hydrogen business as new pillars of growth.

Euisun Chung, Executive Chair of Hyundai Motor Group, is conducting a vehicle evaluation with employees at Hyundai Motor's Brazil plant. Hyundai Motor Group

Hyundai Motor: Brazil Plant Became A Strategic Base for Latin America Since 2012

According to Hyundai Motor Company on July 30, Euisun Chung joined the presidential state visit to Brazil as a member of the business delegation, and followed an independent itinerary to visit the Hyundai Motor Brazil plant in Piracicaba, Sao Paulo state. The Brazil plant is Hyundai Motor's key base for production and sales in Latin America, as well as the location of its Latin America regional headquarters and R&D center. Since production began in 2012, the plant has achieved an annual production capacity of 200,000 units, manufacturing strategic models for Brazil, and has served as a symbol of Korea-Brazil economic cooperation.

An important reason for Chung’s visit is the rapidly changing auto market in Brazil. The country is the world’s sixth-largest market, with annual automobile demand reaching 2.5 million units, and is the eighth-largest producer, manufacturing 2.6 million vehicles annually. Brazil is also a resource-rich nation, ranking second in the world for rare earth reserves and holding more than 20% of the world’s graphite reserves, making it a central supplier for electric vehicle batteries and renewable energy industries.

Brazil's unique fuel ecosystem also stands out, as most of the market consists of FFVs (Fuel Flexible Vehicles) that use a mixture of gasoline and ethanol. In addition, imported vehicles are subject to a 35% tariff, making local production essential for price competitiveness. The Brazilian government has introduced the "Green Mobility Innovation (MOVER)" program to promote investment in local production of eco-friendly vehicles as part of its decarbonization policies. Beginning in July 2026, a 35% import tariff applies to eco-friendly vehicles, including electric vehicles, the same as for internal combustion models, further increasing the importance of local production.

Market shifts are also presenting new challenges for Hyundai Motor. Recently, Chinese companies have targeted Brazil as a central market in Latin America and are making significant investments. BYD, for instance, acquired a plant previously operated by Ford and has begun local production, boosting its sales ranking from eighth place last year to fourth in the first half of this year. According to the China-Brazil Business Council (CBBC), Chinese investment in Brazil in 2025 reached $6.1 billion, a 45% increase year-on-year. As the competition intensifies with local production rather than simple exports, the market landscape is changing rapidly.

Hyundai Motor Company i20. Hyundai Motor Company

Executive Chair Chung Evaluates Production and Sales Strategy at Hyundai Motor Brazil Plant

To address these changes, Hyundai Motor intends to prioritize locally tailored products and eco-friendly strategies for Brazil. Executive Chair Chung first visited the Latin America R&D Center within the Brazil plant to check local research and development capabilities, emphasizing, “To ensure sustainable, mid- to long-term competitiveness, we must further strengthen local R&D and actively pursue powertrain localization.”

At the production site, he directly inspected the quality of the i20, which began production in June, and the Creta, a flagship local SUV. In March 2026, total production at the Brazil plant surpassed 2.5 million units. Chung said, “Reaching 2.5 million units produced in just 13 years is the result of dedication and teamwork by our employees. Brazil is a very important market for Hyundai Motor’s global business, and we will continue to support it actively.”

Building on strategic models HB20 and Creta, Hyundai Motor plans to further penetrate the small car segment with the newly introduced i20. The i20 is tailored for Brazil’s fuel environment with an exclusive FFV powertrain, and offers SUV-level interior space and advanced safety and convenience features. Hyundai Motor also plans to expand customer experience-centered marketing through collaborations with companies in travel, retail, entertainment, and other sectors.

For the mid- to long-term, the company will focus on SUVs and eco-friendly vehicles as two key pillars. The market share of SUVs in Brazil is expected to grow from 43% in 2025 to 51.2% by 2030. Hyundai Motor’s strategy is to strengthen Creta sales while adding a broader lineup of SUVs to capture this increasing demand ahead of the competition.

The eco-friendly vehicle strategy will also offer differentiation based on local characteristics. Hyundai Motor is considering local production of small electric vehicles, while accelerating the development of an FFV-HEV (hybrid based on ethanol-gasoline mixed fuel) exclusive powertrain that caters to Brazil’s unique fuel environment. FFV-HEV models, aimed at the Brazilian market, will first be applied to SUVs, the most popular vehicle segment.

The hydrogen business will also be cultivated as a future growth engine. Brazil is promoting hydrogen industry development at the national level based on its abundant renewable energy resources. Hyundai Motor Group plans to expand its business across the hydrogen value chain, leveraging its fuel cell technology and group affiliates’ capabilities for hydrogen commercial vehicles, hydrogen trams, green hydrogen production, fuel cell system supply, and renewable power plant construction. The group also intends to ensure mid- to long-term technological competitiveness through academic-industrial partnerships with local universities such as the University of Sao Paulo.

Euisun Chung, Executive Chair of Hyundai Motor Group, is inspecting the production line together with employees at Hyundai Motor Brazil plant. Hyundai Motor Group

96,000 Units Sold in H1 2026... Biggest First-Half Sales Since 2019

Hyundai Motor's business in Brazil continues to show stable growth. According to FENABRAVE (the Brazilian Federation of Automobile Distributors), in the first half of this year Hyundai Motor sold 96,723 units in Brazil, a 12.1% increase year-on-year, marking its highest first-half sales since 2019. Hyundai Motor maintained a 7.1% market share and ranked fifth among automotive brands.

The HB20 model has surpassed 1.88 million cumulative sales and is close to the 2 million mark, while the Creta became the best-selling SUV at Brazilian dealerships in the first half, firmly establishing itself as a leading local model. In addition, Hyundai Motor aims to settle the i20, launched in June, into the market and achieve total annual sales of 204,000 units this year.

Alongside business performance, Hyundai Motor is also strengthening ESG management. The company has planted 100,000 trees through reforestation projects to restore the Brazilian rainforest and has been operating a free dental care program for local residents for more than 10 years. Thanks to these initiatives, the Brazil plant was certified this year as an "Outstanding Company in Ethical Management" by the Federal Court of Accounts of Brazil and was recognized as a "Great Place to Work" for the ninth consecutive year. It is the only local automotive company to receive the ethical management certification in the past 10 years, and it has achieved 15 consecutive years of wage negotiations without labor disputes.

Despite intensifying competition in the Brazilian market, Hyundai Motor plans to further strengthen the competitiveness of its Latin American hub through local production, R&D, customized eco-friendly vehicles, and hydrogen business, preparing for the next stage of growth.

This content was produced with the assistance of AI translation services.