Global automotive semiconductor leader Infineon suggested that South Korea’s Hyundai Motor Group will claim the top spot in the worldwide automotive market after 2030, surpassing current leaders Toyota and Volkswagen AG. This unexpected prediction stems from the belief that Toyota and Volkswagen, who currently are in first and second place respectively in the market, will fall behind in the electric vehicle (EV) and Chinese markets.

According to sources on Wednesday, high-ranking executives from Infineon recently visited the Hyundai and Kia headquarters in Seoul to share their outlook and perspectives. The discussions reportedly focused on the supply of semiconductors for Hyundai and Kia vehicles, as well as business plans for 2024.

Infineon presented a future market outlook during the meeting that suggested Toyota, which currently sells about 10 million cars annually, and Volkswagen, whose sales top 9 million units, will experience significant declines in future sales. The duo’s sales volumes are ultimately predicted to become comparable to Hyundai Motor Group’s current sales of around 7 million units.

Infineon’s basis for predicting Hyundai Motor Group’s ascent to the top is primarily linked to Toyota’s delayed electrification strategy. With carbon neutrality gaining global attention and various governments working towards electric mobility, Toyota’s strategy of a belated transition to electrification could put Hyundai Motor Group ahead in the race.

Infineon highlighted that, as carbon neutrality becomes a global priority, Toyota is expected to be surpassed by Hyundai Motor Group, which has “electric first mover” strategy of expanding its electric vehicle product range. The latter has been proactive in enhancing its electric vehicle lineup to meet the growing demand for eco-friendly transportation.

The car semiconductor giant also predicted a decline in Volkswagen’s sales in the Chinese market due to the remarkable progress of Chinese rivals. Recent data from the China Association of Automobile Manufacturers (CAAM) indicated that Chinese brands topped 50 percent in market share for the first time in 2023, suggesting a potential reduction in Volkswagen’s future sales in China.

By Park So-ra and Minu Kim

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