ABSTRACT
The trend of green shift in the automotive industry is likely to continue even in the post Covid-19 era. In this chapter, we will investigate the case of Hyundai Motor Group (including Kia Corporation, hereinafter HMG), and attempt to draw four significant strategic issues for existing automakers to adapt to the green shift in automotive industry, which is driven by social requirements. First, the group’s countermeasures for electrification, including the process of developing and commercializing eco-friendly vehicles, can be characterized as emergent strategies with flexible attitude towards planning and implementation. Second, to save a huge amount of costs for electrification of power train, the group made most of the existing resources universally and enjoyed economies of scope. Third, the group’s case suggests the importance of balancing between in-home development of core technologies and the outsourcing of complementary resources during the transition period of industrial evolution. Fourth, the group’s attempts to participate in the co-creation of a small value chain for the spread of hydrogen fuel cell vehicles can be considered effective in maximizing first mover advantages and minimizing the first mover’s investment burden, which can be a latecomer advantage.
