{
  "id": 10670278,
  "title": "EU Pushes 70% Local EV Parts Rule: What's Impact on Hyundai Motor Group?",
  "url": "https://urgent.news/2026/09/29/eu-pushes-70-local-ev-parts-rule-whats-impact-on-hyundai-motor-group",
  "topic": "business",
  "section": "Business",
  "published": "2026-09-29T10:50:53.000Z",
  "source": {
    "name": "BusinessKorea",
    "slug": "businesskorea",
    "url": "https://www.businesskorea.co.kr/news/articleView.html?idxno=277865"
  },
  "original_language": "en",
  "account": "The European Union (EU) is considering a new bill that mandates electric vehicles (EVs) to have over 70% of their components manufactured and assembled locally within the region. This bill, known as the Industrial Acceleration Act (IAA), is designed to bolster the domestic market and counteract the growing presence of Chinese electric vehicle manufacturers. If enacted, the bill could be implemented as early as 2028 and could lead to advantages such as purchase subsidies, public procurement, and corporate vehicle benefits for EVs meeting the criteria.\n\nThe EU is facing competition from Chinese electric vehicle brands such as BYD, SAIC Motor, Chery, and Leapmotor. These brands have seen a significant surge in market share, with their combined market share nearly doubling from 4.7% to 9.3% over the past year. In contrast, the European market share of Hyundai Motor Group and Kia, in August, was 7.5%, a decrease of 1.2% points from the previous year. However, Hyundai Motor Group has a potential advantage as it operates plants in Europe, which could facilitate compliance with the bill.\n\nHyundai Motor Group's local plants in the Czech Republic (Hyundai Motor Czech) and Slovakia (Kia Slovakia) are already contributing to the regional production of vehicles. For instance, Kia's Zilina plant in Slovakia has seen a substantial increase in the proportion of electric vehicles in its August shipment volume, from 11.2% a year ago to 39.3%. Likewise, the Hyundai Motor Czech plant has been producing electrified models like the Kona Electric and Tucson Hybrid, which constitutes about half of its August shipment volume.\n\nHowever, meeting the 70% local component requirement will pose challenges, particularly in procuring core parts such as batteries and drivetrains. Moreover, Turkey, a customs union with the EU but not an EU member state, raises questions about whether vehicles assembled there would be considered locally produced. Furthermore, Chinese automakers are also ramping up their local production efforts, with BYD preparing for mass production at its Hungary plant in the fourth quarter of the year.\n\nDespite these complexities, Hyundai Motor Group appears to be better positioned to meet the regional assembly requirements compared to Japanese automakers, whose electric vehicles are mostly imported from outside the region. The EU is expected to finalize the bill in December following discussions in the European Parliament and the Council of the European Union. The bill's final standards, including the calculation method for the parts ratio and the scope of recognition for extra-regional production, are anticipated to be established at that time.",
  "summary": "As the European Union (EU) pushes forward with a bill that favors electric vehicles produced within the region, the calculations of the South Korean automotive industry have become complex.While Hyundai Motor Group, which operates local plants in Europe, is evaluated to be relatively well-equipped t",
  "key_points": [
    "EU proposes 70% local EV parts rule in Industrial Acceleration Act (IAA).",
    "Hyundai Motor Group has European plants in Czech Republic and Slovakia for compliance.",
    "Meeting 70% local component requirement poses challenges with core parts procurement."
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}