Hyundai Rejects Buying Chinese EV Carbon Credits, Prepares for Direct Battle in Europe

Hyundai Motor has announced it is fully prepared to compete head-to-head with Chinese automakers in the European market and explicitly stated it will not purchase carbon credits from rivals, including Chinese brands. Xavier Martin, Hyundai’s head of Europe, said this move not only prevents capital outflow but also avoids further strengthening competitors. Facing the EU’s stricter CO₂ emissions standards taking effect in 2025—which set a fleet-wide average limit of 93.6 grams per kilometer for new passenger cars, with a penalty of €95 for each gram exceeding the limit—Hyundai has opted to meet the targets independently. To defend its position as the top non-European automaker in the EU and UK, where it holds an 8% market share, Hyundai plans to launch five new electric and hybrid models within the next 18 months. This includes the all-electric Ioniq 3, scheduled for launch in April 2026, which will directly compete with the Volkswagen ID.3. Meanwhile, Hyundai acknowledged that its electrification transition has progressed slower than anticipated and aims to offer either an electric or hybrid version across its entire model lineup by 2027, rather than pursuing full battery-electric conversion.