Hyundai to cut combustion engine cars for electric

Hyundai is slashing the number of combustion engine cars it makes in favor of electric vehicles.

Sources close to the South Korean automaker told Reuters top management approved the strategy in March.

It will end half of its fossil fuel-powered models, freeing up resources to invest in electric motors, batteries and fuel cells.

Hyundai did not specifically address a Reuters query on its plans for combustion engine models.

But it said in an email Thursday it will try to improve the efficiency of its internal combustion engine vehicle line-up in emerging markets.

The automaker added that it aims to gradually expand battery EV offerings in key markets like the U.S., Europe and China, with the goal of full electrification by 2040.

Hyundai Motor, which also houses Kia and Genesis, is aiming to sell about one million EVs per year by 2025, in order to achieve a 10% share of the global EV market.

Facing tighter carbon emission targets across Europe and China, all major automakers are accelerating their shift to electric vehicles.

PSA Group has said they will no longer invest in combustion engines.

Swedish automaker Volvo has announced plans to go fully electric by 2030, and Ford Motor says its car lineup in Europe will be fully electric by then.

One source says Hyundai will finalise its strategy to switch to all electric models within the next six months.