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Hyundai Motor Group Executive Chair Chung Eui-sun is accelerating the group’s push into Africa. Following India and Southeast Asia, Chung has identified Africa as a new growth engine, expanding the group’s presence beyond vehicle sales into local production, talent development and industrial infrastructure. With protectionist barriers rising in advanced markets such as the United States and Europe and Chinese automakers moving quickly into emerging markets, Hyundai appears to be seeking a first-mover advantage in Africa before the competitive landscape becomes firmly established.

According to industry sources on Sept. 10, Hyundai Motor Group’s strategy for Africa has become increasingly concrete since Chung visited Ghana in July.

Since entering India in 1996, Hyundai Motor has expanded local production and sales networks, turning the country into one of its key global hubs. In Southeast Asia, the company has likewise strengthened its market presence around local manufacturing bases.

Africa is seen as the last major continent in this broader Global South expansion strategy.

The continent has a population of about 1.5 billion and a relatively young demographic profile. More importantly, vehicle ownership remains low, creating significant potential for new demand over the medium to long term. With markets fragmented across individual countries, establishing local production and sales networks is particularly important.

Chung’s attendance at the Korea-Africa Business Summit in 2024 and his meeting with the king of Ghana’s Ashanti Kingdom in July reflect that strategic focus.

Africa also offers room for expansion beyond automobiles into energy and infrastructure, given its demand for critical minerals, energy development and infrastructure investment.

Another key factor is that, unlike in advanced markets, market leadership in Africa has yet to become firmly established. As barriers to entry rise in major markets through US tariffs and local production requirements and European Union carbon regulations, Africa remains a market where global automakers are still competing for future growth opportunities.

Time, however, is becoming a critical factor as Chinese automakers rapidly expand their sales networks and production bases across the continent, intensifying the race for an early foothold.

BYD, in particular, is expanding aggressively in South Africa. The Chinese automaker aims to increase its dealer network to 60 to 70 locations by the end of the year and plans to install up to 300 fast chargers over the same period. Chery Automobile and Great Wall Motor are also pursuing expanded production footprints.

That increases the need for Hyundai to secure local production and sales bases at an early stage and build market share.

Hyundai currently operates local assembly operations in South Africa, Ghana and Ethiopia, while vehicles are also assembled in Egypt through a local partner. Algeria is set to become another production hub, with Hyundai seeking to establish a new assembly plant there by next year.

“Africa still has a low vehicle penetration rate and its markets are fragmented by country, making it difficult to dominate the region through exports alone,” an industry official said. “It is important to establish local production and sales networks while linking them with energy, infrastructure and talent development to secure an early position in the region’s industrial base.”

                                                                                                            Kim Jeong-gyu