Hyundai and affiliate Kia plan to triple their number of
fuel-efficient cars by 2020, following investor concerns over fuel economy and
green credentials.
Hyundai's latest Genesis
and Kia's Soul
have lower fuel mileage than their predecessors and the company faces a roughly
$350m (£220m) fine in the US for overstating their vehicles' fuel economy.
Under
today's plan, Hyundai and
Kia, which is part owned by Hyundai, will raise their
number of fuel-efficient cars from seven now to "at least" 22 by
2020.
"We
have set an internal target of making it to number two in the global
eco-friendly car market, which is expected to grow from this year's 2.2 million
vehicles to 6.4 million in 2020," Hyundai said in a joint
statement with Kia.
Hyundai and Kia plan to release 12 models
powered by gasoline-electric hybrid engines, expanding the line-up to small
cars and sport utility vehicles and the pair's green range will also have six
plug-in hybrid mid-sized and compact cars, two fuel-cell cars and two
battery-powered electric cars.
A week
ago the pair pledged to raise the fuel economy of their vehicles by 25 per cent
by 2020 to meet emissions regulations in the US and Europe and at home in South
Korea. On Tuesday the pair said they would buy back 670 billion won (£390m)
worth of shares, in what was widely regarded as an attempt to appease investors
angered by a $10bn bid for property for new headquarters.
"Investors
have complained about Hyundai's
lack of shareholder-friendly policies and communication about its vision,
especially after the land deal," said analyst Yim Eun-young of Samsung
Securities.
"Today's
announcement seems to be part of its efforts to soothe shareholders and better
communicate with the market."
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