Hyundai Motor Group Executive Chair Euisun Chung visited the automaker’s Piracicaba plant in Brazil to chart a mid-to-long-term growth strategy for the country. The visit comes as Hyundai eyes expanded SUV and electrified lineups, alongside a nascent hydrogen strategy, in a market where fuel-flexible vehicles dominate and import tariffs reach 35%.

The Piracicaba plant, Hyundai Motor Brazil’s production hub since 2012, passed 2.5 million cumulative vehicles in March 2026 and builds around 200,000 units a year across the HB20, Creta and i20. Chung said the milestone reflected years of teamwork and customer trust, and called for renewed focus on production quality as competition intensifies.

Central to Hyundai’s strategy is the i20, launched in June 2026 with an ethanol-gasoline FFV powertrain to target Brazil’s B-segment, which accounts for 23% of the market. The Group also plans to diversify its SUV and electrified range, develop FFV-HEV hybrid powertrains suited to Brazil’s ethanol-gasoline fuel mix, and explore hydrogen mobility through local R&D and academic partnerships.

The strategy follows strong first-half 2026 sales of 96,723 units, up 12.1% year-on-year and Hyundai’s best first-half performance since 2019, giving it a 7.1% market share and fifth place among Brazilian automotive brands. Hyundai is targeting total 2026 sales of 204,000 units as it builds toward a broader Latin American growth push.

Why this matters:

• Ethanol-hybrid rather than battery-electric is an interesting decarbonisation answer for Brazil.A powertrain that runs on locally produced sugarcane ethanol addresses emissions without requiring charging infrastructure. If it proves commercially viable, it offers a compelling template for other emerging markets with similar fuel ecosystems.
• 35% import tariffs make local production a structural requirement, not a strategic choice.What remains unclear is whether the Piracicaba plant can actually support the expanded SUV and electrified lineup Chung outlined without requiring significant additional capital investment.
• Brazil’s hydrogen ambitions align unusually well with Hyundai’s existing portfolio.As one of the few OEMs with commercial fuel cell technology across vehicles and stationary applications, Hyundai can offer an integrated hydrogen ecosystem—commercial vehicles, trams, and production infrastructure—that pure EV players cannot match.