No more new combustion engines? Hyundai Motor reportedly closes engine R&D division

According to a Korea Economic Daily (KED) news report, Hyundai Motor Group has closed its engine research and development centre in Namyang. This means that Hyundai will not be developing new internal combustion engines and shift its focus to battery-electric powertrains instead.

Multiple industry sources told KED that the Namyang R&D Centre in South Korea has been closed since 23-December-2021.

The centre was set up when Hyundai Group founder Chung Ju-yung, and grandfather of the current Hyundai Motor Group Chairman Chung Euisun, ordered the company to start making its own engines in 1983.

As a result, the first engine, known as the Alpha engine, was unveiled in 1991. Subsequent engines such as the Beta, Theta, and Nu engines were also developed at the plant.

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KED also reports that most of the 12,000 researchers originally working at the centre will be relocated to the electrification design centre. Only a lean team will be left behind to continue modifying existing combustion engines.

Hyundai has also established a battery development centre under the electrification design centre to research advanced battery technology, therefore accelerating the company’s electrification process.

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The centre will be separated into many sub-teams that focusses on battery design, battery performance development, and more.

In addition to that, the centre will also focus on raw materials for batteries and semiconductors as demand for these components will grow as the sale of electric vehicles (EV) take off.

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With Korea aiming to reach carbon neutral status in 2050, it is not a surprise that Hyundai Motor would take drastic steps to pledge itself to phase out combustion engine cars.

Hyundai Motor President and CEO Chang Jae-hoon recently announced that both Hyundai Motor and Kia Corporation targets to sell 1.7 million EVs worldwide by 2026.

That is 1 million more than its 2025 target as the company predicts the EV market will see rapid growth globally.