PARIS/SEOUL: Hyundai Motor Group will increase the amount of combustion engine versions in its own line-up to free up funds to purchase electric vehicles (EVs), two individuals near the West automaker told Reuters.

The move is going to end in a 50% decrease in versions powered by fossil fuels, among those individuals said, including the plan has been accepted by top management in March.

“It’s a significant company movement, that first and foremost makes it possible for the launch of R&D tools to concentrate on the remainder: electrical motors, motors, fuel cells, and” the individual said, without providing a time for the program.

While Hyundai didn’t expressly deal with a Reuters question on its own strategies for combustion engine versions, it stated in a post on Thursday it had been accelerating adoption of eco friendly vehicles like hydrogen fuel cell vehicles and battery powered EVs.

The automaker added it plans to slowly enlarge battery EV offerings in key markets like the United States, Europe and China having a target for complete electrification from 2040.

Hyundai Motor Group, that homes Hyundai Motor Co and Kia Corp and Genesis, intends to sell approximately one million EVs each year from 2025 to attain a 10 percent share of this worldwide EV industry.

Facing tightening CO2 emission goals in Europe and China, all significant automakers are quickening their change into EVs.

The enormous expense of creating electrical motors and raising the driving variety of automobile batteries has led some to state their times of purchasing traditional engines are finished.

“Hyundai has stopped creating new powertrains for internal combustion motor automobiles,” among those folks mentioned.

PSA Group stated in November, soon before merging using Fiat Chrysler to sort Stellantis, it had no more investing in combustion motors.

Daimler has just revived its combustion engines and executives say that the new creation may see it via the electrification procedure.

Some carmakers have announced plans to move completely electrical, together with Sweden’s Volvo, which is owned by China’s Geely, stating it could do this by 2030.

Ford Motor Co maintains that its line-up at Europe will probably be completely electric by exactly the identical date.

For Hyundai, that jointly with Kia is among the world’s top ten most car collections, the relocation is very important as it’s among the broadest collections of motor and transmission technology in the business.

The team will finalise its approach to change into all-electric models over the subsequent six months, 1 source said.

Back in April, Hyundai said it could cut the amount of its gas units in China into 14 out of 21 from 2025, while starting new electrical models each year beginning in 2022.

In Februarythe team said it wasn’t any more in talks with Apple to create an autonomous car.

Sources knowledgeable about the issue said the concept of this group turning into a contract maker for Apple broke powerful internal resistance.