- Company continues success story on the way to becoming the No. 1 Asian car brand in Europe
- In 2016 205,655 people owe their jobs to presence of Hyundai in Europe
- Hyundai is directly responsible for added value totalling €2.7 billion
- Hyundai Motor has again proved its worth in the highly competitive European automobile industry.
This is shown by a recently published study by the independent consultancy London Economic. According to the study, Hyundai Motor has generated further above-average growth rates and taken an important economic position in Europe.
The report, entitled “The economic and social benefits resulting from the presence of Hyundai in Europe”, underlines in particular Hyundai’s stable economic indicators. It shows that Hyundai Motor has increased its market share to 3.3% and the number of cars sold by Hyundai in the EU was up by 7.2% on sales in the previous year. Furthermore, Hyundai was able to employ more people in 2016: The workforce employed directly by Hyundai and supported by the brand’s operations in the upstream and downstream markets consists of 43,756 individuals. Overall 205,655 people owe their job to the presence of Hyundai in Europe.
In 2016, the amount that Hyundai paid to European governments in taxes rose to €1.3 billion, taking into account customs duties, revenue and income taxes. This means that tax paid by Hyundai increased by 49% from €870 million to €1.3 billion, which further supported the economy in the region.
In addition to economic success, a long-lasting, close relationship with its regional suppliers is particularly important for Hyundai. This close relationship was reinforced by the construction of a production facility in Nošovice, Czech Republic, in 2008. The flagship production line sources 84% of its raw material in Europe and produces €535 million in gross value added (GVA) from a turnover of €5.3 billion. The Czech factory has capacity to produce over 350,000 cars and 600,000 transmissions a year. Together with the 200,000 units of capacity at its Turkish plant, Hyundai Motor has now an annual production capacity of over 550,000 cars primarily for European customers.
Furthermore the specialists of London Economics stated that the GVA across the areas of manufacturing, supplies, research & development and sale & distribution of €2.7 billion directly produced by Hyundai in Europe generates output throughout the European economy of €8.1 billion.
Hyundai Motor achieved registrations of more than 500,000 vehicles in Europe last year and has one of the youngest model line-ups in the car industry. Reaching such milestones is made possible due to the operational scale we have established, bringing great benefits to the region, as outlined in this new study. We remain fully committed to Europe and its citizens, as we continue with our growth strategy for the coming years.Thomas A. SchmidChief Operating Officer at Hyundai Motor Europe
The entire value chain from research and development to distribution is located in Europe. Hyundai has sales distribution networks in all EU member states. Sales and distribution add an additional €1.6 billion to European GDP, while the R&D facility adds a further €24.2 million.
The full report is available to download at www.hyundai.news and includes further data and analysis, as well as an overview of Hyundai Motor’s social contributions.