Electric vehicle (EV) adoption is growing rapidly worldwide, driven by growing environmental awareness, government incentives and policies, technological developments that improve battery efficiency and extend driving range, and fluctuations in oil prices. According to the International Energy Agency’s (IEA) Global EV Outlook 2024 report, EV sales reaching 14 million in 202335% increase year-on-year.
Last year, China accounted for about 60% of global EV sales, with Europe accounting for 25% of EV sales, followed by the United States at 12%. In addition, the total number of electric cars on the road exceeded 40 million by the end of 2023.
The electric vehicle market in Asia is poised to grow and evolve significantly, with two key players standing out: Tesla, Inc. (TSLA) and Hyundai Motor Company (HTMTF). As both electric vehicle manufacturers battle for dominance in the region, their strategies, growth trajectories and technological developments are coming into focus.
This article explores the current rankings of TSLA and HYMTF in Asia, comparing their sales growth, technological innovations and production capabilities to assess which is best positioned to lead the EV race.
Tesla: A strong comeback in China
Tesla’s presence in Asia is most significant in China, the world’s largest market for electric vehicles. After facing competitive pressures from local automakers such as BYD Company Limited (BYDDF) and the aftermath of the COVID-19 pandemic, TSLA appears to be on the road to recovery in this key electric vehicle market.
For the week ending September 15, Tesla witnessed 15,600 insurance registrations in Chinaaccording to CnEVPost. The EV maker sold 63,456 vehicles in China in August, the highest of the year. 37.3% increase since July. This resurgence in China follows a series of price cuts aimed at stimulating demand, as well as the company’s investment in expanding its Shanghai Gigafactory.
China remains central to Tesla’s global strategy. With the Model 3 and Model Y top sellers, Tesla continues to build brand loyalty through technological excellence, its established Supercharger network and a focus on in-house battery production. Tesla’s adoption of 4680 battery cells and Full-Self Driving (FSD) capabilities also give it an edge in autonomous driving features and range performance, critical selling points in China’s tech-savvy EV market.
Beyond China, Tesla’s impact in other Asian markets, including Japan and South Korea, is growing as it expands its product offerings. Statista predicts that Asia will see a significant increase in revenue for Tesla (Passenger Cars), reaching $2 billion this year. Further, the market is estimated that growing at an annual rate of 7% from 2024 to 2028.
Hyundai: Building momentum across Asia
While TSLA has been dominating the headlines lately, HTMTF has been quietly building its EV presence in Asia with a strong lineup of new models and strategic investments in technology. Hyundai’s diverse portfolio covers a wide range of consumer preferences, from new compact SUV ISNTR and KONA Electric in the electrified streamlining IONIQ 6 and the high-performance IONIC 5 N.
Also, the company’s IONIQ 5 and IONIQ 6 models have gained significant traction, especially in South Korea. The company is also making inroads into Southeast Asia, which Tesla has yet to fully penetrate. Hyundai’s strength lies in its differentiated approach to electrification. While expanding its range of battery electric vehicles (BEVs), Hyundai is also developing hydrogen fuel cell vehicles, targeting markets where hydrogen infrastructure can play a future role.
Manufacturing capacity is another area where Hyundai is making strides. The company announced plans to increase production at its Ulsan plant in South Korea, the world’s largest auto plant, and made significant investments in EV infrastructure across Asia.
Comparison of sales and profit growth
In terms of net sales numbers in Asia, Tesla continues to have an edge, particularly in China. However, Hyundai is steadily gaining ground, particularly in markets such as South Korea and Southeast Asia, with a strong brand presence and expanding EV line-up.
During the second quarter of 2024, TSLA produced nearly 411,000 vehicles and delivered approximately 444,000 vehicles. The company Total revenue up 2.3% year over year to $25.50 billion. Its gross profit was $4.58 billion, up marginally from the previous year. However, the EV maker reported net income of $1.49 billion, or $0.42 per share, down 42.8% and 46.1% from the year-ago quarter, respectively.
HTMTF’s sales rose 6.6% year-on-year to KRW 45.02 trillion ($33.84 billion) for second quarter ended June 30, 2024. The company’s gross profit rose 9.4% from the previous year’s value to 9.74 trillion KRW ($7.32 billion). Its operating income was KRW 4.28 trillion ($3.22 billion), a marginal year-over-year increase. Also, Hyundai posted net income of KRW 4.17 trillion ($3.13 billion), up 24.7% year-on-year.
Bottom line
The EV race in Asia is heating up, with Tesla and Hyundai having unique strengths. Both TSLA and HTMTF present attractive opportunities for investors, albeit with different risk-reward profiles. Tesla’s dominance in China and global market dominance, particularly in self-driving and battery technology, make it an attractive market for those betting on continued growth in the world’s largest electric vehicle market.
Meanwhile, Hyundai’s expanding EV lineup, growing presence in key Asian markets and diversified electrification strategy, including both BEVs and hydrogen fuel cell vehicles, make it an exciting choice for investors looking for long-term growth with a balanced approach .