The carmaker Hyundai has said that it will double the range of its hybrid car models amid a wider slump in consumer demand for “pure” electric vehicles.
Hyundai, which is increasing the number of hybrid vehicles in its portfolio to 14, also plans to move beyond making compact and mid-size electric vehicles (EVs) and challenge in the large and luxury vehicle sectors.
The announcement by the world’s third-biggest carmaker came as Xpeng, the Chinese electric vehicle maker, launched a budget-priced $17,000 (£12,850) model designed to spark sales and challenge the popular Tesla Model 3.
Hyundai said it aims to address the “EV deceleration” by expanding the number of hybrid and new extended-range EV (E-REV) offerings and “gradually increasing EV models by 2030 when a recovery in EV demand is expected”.
It plans to release an E-REV capable of travelling more than 500 miles on a single charge in North America and China. Consumers have expressed concerns over “range anxiety” – that they will be stranded, unable to recharge before reaching their destination.
Despite the announcement of an expansion in its hybrid vehicle strategy, Hyundai kept its EV sales target unchanged at 2m sales a year by 2030.
Earlier this month, the UK car industry downgraded its forecast for EV sales this year.
The lobby group the Society of Motor Manufacturers and Traders downgraded an earlier forecast that battery cars would account for 19.8% of total sales this year to 18.5%, with some carmakers concerned that they would miss EV targets set by the UK government.
Under the zero emission vehicle mandate, 22% of each carmaker’s sales must be pure battery cars in 2024, rising to 80% by 2030.
Labour has said it will reintroduce a plan to ban new petrol and diesel car sales in 2030, after the former prime minister Rishi Sunak delayed it until 2035.
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While Chinese electric and hybrid vehicle makers are pushing ahead, traditional manufacturers are retrenching after a slowdown in consumer demand.
Ford, Porsche and Mercedes-Benz have all pared back their targets in relation to EV sales.
The electric vehicle leader, Tesla, is running short of the sales rate required to match the 1.8m cars it sold last year.
Tesla has also gambled on price cuts to stimulate sales, announcing global reductions of as much as 20% last year.