Hyundai and Kia Set Sights on US Pickup Market with EREV Technology

Hyundai Motor Group is gearing up for a renewed assault on the lucrative US pickup truck market, according to a report from The Korea Economic Daily. The Korean automaker aims to challenge established players with extended-range electric vehicles (EREVs) as early as 2028.

Analyzing the Competition

In late July, Hyundai’s Namyang Research Center began a thorough teardown and analysis of Tesla‘s Cybertruck. This examination, scheduled to conclude on August 28, will inform the company’s EREV development efforts led by their xEV task force.

Bold Production Plans

Sources indicate that Hyundai plans to produce an EREV pickup (codenamed TE) from 2029, while Kia targets a 2028 launch for its EREV truck (codenamed TV). Both automakers aim to manufacture over 50,000 units annually.

“The goal is to secure the power and driving range to pull loads exceeding 4,000 kg while still traveling more than 500 km,” an insider revealed.

Shifting EV Strategies

Initially, Hyundai and Kia had planned to release pure electric pickups by 2026. However, concerns about a prolonged “EV chasm” and the strong showing of EREV technology at the Beijing Motor Show in May prompted a strategic pivot.

The Allure of the US Pickup Market

The focus on pickup trucks is driven by their dominance in the US market. Pickup sales in North America range from 2.8 to 3 million units annually, more than double the sedan market. The top three models – Ford F-Series, Chevrolet Silverado, and Ram Pickup – sold over 1.7 million units last year, surpassing Hyundai and Kia’s combined US sales of 1.65 million vehicles.

Profitability is another key factor. General Motors previously disclosed that large pickup trucks generate at least $17,000 in profit per unit, more than twice that of mid-to-large sedans.

EVXL’s Take

Hyundai and Kia’s ambitious plans to enter the US pickup market with EREV technology demonstrate their commitment to electrification and market expansion. This move aligns with the growing trend of electric pickups gaining traction in the US, as seen with Tesla’s Cybertruck and other upcoming models. By leveraging EREV technology, the Korean automakers aim to address range anxiety while still offering the capability truck buyers demand. It will be interesting to see how these new entrants fare against established players and other EV startups in this highly competitive segment.

Photo courtesy of Kia / Hyundai