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With the Hyundai Motor Company’s announcement of its plan to create a family of Ioniq-brand electric vehicles (EVs), the automaker’s stock rose to as much as 10.2% to its highest price since May of 2018.
Aiming to become part of the top 3 largest EV makers by 2025, Hyundai Motor announced earlier Monday its plan to elevate Ioniq from individual vehicle nameplate to a brand. It is in line with the company’s target of capturing as much as 10% of the global EV sales in the next five years.
Hyundai shares increased as much as 162,000 won ($136.47) on a broader KOSPI market KS.11, which was up 0.4% at 0122 GMT.
An increase in other auto shares was also noted, with affiliate automaker Kia Motors Corp (000270.KS) rising to 5.6%, Mando Corp (204320.KS) climbing as much as 5.3%, and parts suppliers Hyundai Mobis Co Ltd (012330.KS) springing up to 7.4%.
According to respected SK Securities analyst Kwon Soon-woo, the launching of the new EV family brand is a piece of good news to investors. They hope that Hyundai Motor will outperform other industries in the coming years.
In an interview published on Korean newspaper Chosun Ilbo last Sunday, Chief Executive of the Nikola Corp, Trevor Milton, said that their EV startup company is willing to cooperate with Hyundai. He added that he had made proposals to Hyundai twice but were rejected.
Hyundai Motor, however, declined to give a statement on the matter.
Last month, Hyundai Motor Group leader Euisun Chung said that their auto motor company, together with Kia Motors, aims to sell 1 million electric vehicles in five years. They are looking to achieve a target goal of more than 10% of the world’s market share for such cars in 2025.
On Monday, Hyundai said it would introduce all-electric vehicles under the Ioniq brand early next year. These include the Ioniq 5, the Ioniq 6 sedan, and the large crossover Ioniq 7.