Hyundai Motor Group to Launch Third All-Electric Car in 2014

The move to introduce the Kia-based model is part of the car maker's strategy to have a diverse electric-car lineup over the next few years, Yoo Kiho, director of Hyundai's Fuel Cell Vehicle Team, told Dow Jones Newswires Thursday on the sidelines of a government-led green car workshop.

It remains to be seen which Korean car maker will be the first to launch an electric car in the local market. Kia is on course to unveil its first electric car based on its Ray box-type car in 2013 while rival Renault Samsung Motors Corp., the South Korean unit of Renault S.A. (RNO.FR), had said it will sell the SM3 ZE electric car in the same year.

Hyundai Motor Co. Ltd. (005380.SE), a subsidiary of South Korea's largest automotive group, plans to debut its electric car based on the Elantra compact in 2014, when BMW will also enter the local electric car market with its i3 model.

As for its overall market strategy, the Hyundai automotive group aims to sell mainly all-electric cars in the domestic market and export fuel-cell electric cars to European and U.S. markets due to their established fuel-cell charging infrastructure, Mr. Yoo said, without elaborating.

Separately, Chung Chi-kyo, general manager of Korea Electric Power Corp.'s (015760.SE) Distribution Development Department, said South Korea's infrastructure for electric cars still lags those of advanced countries although the number of charging stations in the country is expected to rise to 3,140 by the end of this year from 540 currently.

To encourage the future growth of electric cars, the South Korean environment ministry is urging the government to grant sizable subsidies to individual customers of such cars. The finance ministry has baulked at the idea due to budgetary constraints but the government is in talks to reach a solution on the matter, Mr. Chung said.

Hyundai launched the BlueOn electric car in late 2010 for government use only and has no plans to introduce the model in the retail market.