HYUNDAI Motor Company Australia CEO Don Romano has admitted the company is doing a “terrible job” with its Ioniq electric vehicle line-up and needs a strategic overhaul to catch up with competitors that are significantly outperforming the brand in the EV space.

Speaking at the Ioniq 9 electric large SUV launch in New South Wales last week, Mr Romano conceded that Hyundai’s market share of electric vehicles is “extremely low” relative to its overall market position, attributing this to errors in its initial approach to EV distribution.

“We do a terrible job with our EVs – on the record we are not doing the job we should be; our market share of electric vehicles is extremely low relative to our market share of total vehicles,” Mr Romano said.

“The only explanation for that is that we haven’t put enough focus on it.”

Don Romano

The Canadian-born executive, who joined Hyundai Australia in March this year as its first non-Korean CEO, identified the root cause of the problem as the company’s decision to bypass its dealer network when EVs were first introduced.

“When we first came out with EVs, we were selling direct. We went around our dealers,” he explained.

This direct-sales approach has left Hyundai playing catch-up with its dealer network, which must now be brought back into the fold and convinced of its central role in Hyundai’s EV distribution strategy.

“We have a job to do to get our dealers back in the game and to let them know that we are going through our dealer body, and that you are an important part of the distribution process,” Mr Romano said.

The admission comes as Hyundai watches other manufacturers, including sister brand Kia, achieve significantly better results with their electric offerings.

“I can see other car companies that are doing a much better job with their EVs than they do with their ICE,” Mr Romano noted, adding that in markets where he previously worked, Hyundai led while others followed, but in Australia “it’s the other way around”.

The company is now embarking on what Mr Romano describes as a “revolution” in its approach to electric vehicles, extending far beyond just marketing.

“It’s not just about launching the Ioniq 9. For me, it’s what we call a revolution with a big EV in it,” he said.

Ioniq 5

“We need to completely change the way in which we interact with our dealers and communicate and train and market, and then help them market to customers that are interested in EVs.”

The overhaul will include extensive dealer training programs, certification requirements, facility upgrades and charging infrastructure installation – elements that were standard in other markets but were bypassed in Australia due to the direct sales model.

“When we started in other countries, we went out with months and months worth of training and certification programs and facility requirements and setting up chargers. None of that happened here,” Mr Romano revealed.

The Ioniq 9 launch represents the beginning of this new approach, with the company hoping its flagship electric SUV will help demonstrate its commitment to both EVs and its dealer network.

While acknowledging that Kia has taken the lead in EVs within the Hyundai Motor Group locally, Mr Romano said he wants both brands to succeed as they push each other forward.

“I want them to be successful. Do I want to continue to push them if they push me? Absolutely,” he said.