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âThe global automotive force we now know as Hyundai began just before World War II in a small repair shop belonging to a young man named Chung Ju-yung. Step by step, the South Korean company was formed, coming to play a fundamental part in the transformation of the automobile industry.
Hyundai's wild ride from modest beginnings to industry giant includes creating Korea's first mass-produced car and stepping boldly and unexpectedly onto the world stage. Let's see how the company that was once seen as an underdog became the top dog in cars and beyond.
A Visionary Founding: Chung Ju-Yung and the Origin of Hyundai
Chung's story plays out like a movie about never giving up on your dreams. He was born in 1915 to a poor farming family in what is now North Korea. Desperate to escape poverty, he ran away from home three times, only to be found and brought back each time by his father. On his fourth attempt, in 1933, at 18 years of age, he managed to escape and stay, and his stubborn refusal to accept limitations became the DNA of his business approach.
Chung worked a variety of jobs, from construction and dock work to selling rice, and in 1941, he was able to open a tiny car repair shop in Seoul, which he was forced to close in 1943 due to the war.
In 1947, when the war had ended, he ventured into construction with the money he had managed to save from the repair shop. At a time when the country was trying to heal, his primary focus was on helping to rebuild its broken infrastructure.
The Establishment of Hyundai Engineering and Construction
In 1952, the company expanded, and Hyundai Engineering and Construction Company was formed, laying the foundation of what would become Chung Ju-yung's business empire. The company continued to help Korea get back on its feet by taking on major civil engineering projects.
During these early construction years, Hyundai learned how to handle massive projects and built a reputation for being reliable and efficient. But Chung Ju-yung had even bigger dreams and a passion for the automotive industry.
Humble Beginnings in Automobiles
Chung Je-yung wanted to free his country from its dependency on foreign vehicles. He wanted Korea to build its own cars, and in 1967, Hyundai Motor Company was born. "Hyundai" means "modernity" in Korean — a perfect match with Chung's dream of pushing his homeland into a new age of growth. At that time, the company was a baby in an industry dominated by giants, and nobody gave them much chance of success. But Chung was determined to create a Korean car industry from scratch, and his gutsy move eventually helped transform Korea's economy.
The company hit its first major milestone in 1968 when it finished building the Ulsan assembly plant — a factory that grew into the world's largest all-in-one car manufacturing facility. The sheer size of this plant demonstrated that Hyundai wasn't playing small ball. The facility could churn out many vehicles efficiently and cheaply and could compete with practically any other car factory.
At the beginning, instead of jumping straight into designing its own cars, Hyundai partnered with Ford Motor Company, assembling Ford Cortina models for Korean drivers. During this partnership, Hyundai soaked up knowledge about modern manufacturing methods and how to maintain the highest quality.
But Chung wasn't satisfied with just putting together someone else's designs. His dream was a Korean car designed and built by Korean engineers, and this ambition set Hyundai on a path to independence that many thought impossible.
The Introduction of the Iconic Hyundai Pony
Everything changed for Hyundai in 1975 when it rolled out the Pony — Korea's first mass-produced car. Nicknamed "kukmincha,” or "car for the people," because of its cheap and reliable build, the vehicle became a source of national pride on wheels. Owning a car in Korea was no longer only something for the wealthy.
The Pony was such a hit at home that Hyundai started shipping it abroad, with Ecuador getting the first exports in 1976. This little car proved Hyundai could build vehicles that stood up to international standards, and it marked the beginning of the company's worldwide growth.
Strategic Expansion and Global Footprint
During the late 70s and early 80s, Hyundai expanded, with its boldest move coming in 1986, when it entered the competitive U.S. market with the Excel. Americans purchased over 100,000 Excels that first year — a record number for an imported car's first year of sales.
Hyundai's international growth strategy continued, and in 2005, three years after Chung Je-yung's death, Hyundai Motor Manufacturing Alabama was established, and the company began manufacturing abroad. The facility, and others worldwide, allowed customization for local markets while creating jobs that generated community goodwill. This manufacturing network helped Hyundai challenge established automakers directly, an achievement few expected from a Korean company.
Innovation, Technology, and Sustainability
Hyundai invested heavily in safety, performance, and fuel economy research. Its first electric vehicle (EV) — the Sonata EV — debuted in 1991, putting them ahead in green transportation.
Later, in 2016, the IONIQ was launched, breaking ground as the first car with three electric options: hybrid, plug-in hybrid, and fully electric.
Not Just Cars — Hyundai's Diverse Business Ventures and Financial Growth
In 1971, Chung decided to begin shipbuilding, and in 1972, Hyundai Shipbuilding and Heavy Industries was created, quickly becoming a leader in global shipbuilding — a position it maintained for decades. From then on, the company successfully applied cross-industry learning to steel production, robotics, and marine engineering. In 1977, its name was changed to Hyundai Heavy Industries Company to reflect its diversity. Through this diversification, the company could maintain resilience when individual sectors were struggling.
The Hyundai Group now spans shipbuilding, electronics, construction, and financial services, and in 2023, it generated over $110 billion in revenue with a market value of over $20 billion. This financial strength fuels ongoing tech investments and global expansion despite industry challenges such as chip shortages and COVID-19.
Current and Future Prospects of Hyundai
Hyundai continues to evolve and reimagine mobility beyond cars. It aims for 5.55 million vehicle sales globally by 2030 — that's 30% above 2023 figures. With 21 new EV models driving this growth, it plans to sell 1.87 million EVs yearly by 2030 as part of its $87 billion investment in future transportation tech.
An extended-range EV is also on the cards to address the range anxiety many potential EV buyers face. It's set to travel up to 560 miles per charge, equivalent to traveling from Boston to Washington, D.C., nonstop.
Carbon neutrality goals for 2045 involve greener production, renewable energy use, and hydrogen fuel-cell development. Hydrogen tech forms a key investment, with applications extending beyond cars into various industries and positioning Hyundai as a complete mobility provider.
Hyundai's Legacy and Impact on the Automotive Industry
Thanks to Hyundai and Chung Je-yung's bold moves and relentless determination, the way the world views Korean cars has changed drastically, with the country now representing a major automotive force.
Hyundai is leading industry evolution through advancements in EVs, self-driving tech, and mobility innovations. Come and witness the revolution at Huffines Hyundai Plano in Texas, and discover how Hyundai is shaping the future of the automotive industry.
Image via Hyundai
