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Hyundai, Kia Join 87 Suppliers in Carbon Battle—What It Means

Hyundai and Kia are teaming up with the government and 87 auto parts manufacturers to tackle carbon emissions. They'll start by helping first-tier suppliers upgrade their emission reduction facilities. This support will then trickle down to second-tier suppliers, creating a chain reaction throughout the automotive sector. The initiative aims to strengthen Korea's competitive edge as global carbon regulations tighten.

Key Points: Hyundai Kia Partner Suppliers for Carbon Emission Reduction

  • Hyundai and Kia will support first-tier suppliers with emission facility upgrades
  • First-tier suppliers will then assist second-tier suppliers in a chain effect
  • The project aims to boost Korea's competitiveness amid EU carbon regulations
  • South Korea targets 53-61% greenhouse gas reduction from 2018 levels by 2035
2 min read

Hyundai, Kia to join hands with parts suppliers for carbon emission reduction

Hyundai and Kia collaborate with 87 parts suppliers and the government in a new campaign to reduce carbon emissions across South Korea's automotive supply chain.

"Carbon reduction in supply chains cannot be achieved by any single company alone. - Park Dong-il, Ministry of Trade, Industry and Resources"

Seoul, Nov 17

Hyundai Motor and Kia will join hands with the government and 87 auto parts manufacturers in a joint campaign to reduce carbon emissions from the entire automotive sector, the industry ministry said on Monday.

Under the partnership, the two major automakers will first support the replacement of emission reduction facilities of first-tier auto parts suppliers in cooperation with the government, according to the Ministry of Trade, Industry and Resources, reports Yonhap news agency.

Then, the first-tier suppliers will provide the support they receive to second-tier suppliers, with an aim to create a chain effect of carbon reduction throughout the automotive supply chain, the ministry explained.

The ministry said the collaboration project was created to help strengthen the emission reduction competitiveness of Korea's automotive industry amid growing emission-related regulations in major economies, such as the European Union's carbon footprint regulations for vehicles.

"Carbon reduction in supply chains cannot be achieved by any single company alone," said Park Dong-il, a ministry official in charge of industrial policy. "It requires collaboration among the government, large corporations, and small and medium-sized companies."

"We hope that this supply chain carbon reduction agreement will not only help the country achieve its 2035 Nationally Determined Contribution (NDC) target, but also accelerate the green transformation of our industries and provide them an advantage in global supply chain competition," he added.

South Korea recently set its NDC target of greenhouse gas emission reduction by 53-61 per cent from 2018 levels by 2035.

The ministry said it plans to conduct pilot programs on the emission reduction partnership this year with four different industrial consortiums, led by LG Electronics Inc., POSCO Group, LX Hausys Ltd. and LG Chem Ltd., with an aim to expand such partnership programs to various sectors in 2026.

—IANS

- IANS

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Reader Comments

R
Rohit P
Hope Indian automakers like Tata and Mahindra take note. We need similar partnerships here to meet our climate goals. The tiered approach is brilliant!
A
Arjun K
While this sounds good, I hope it's not just greenwashing. Many companies announce such initiatives but implementation is weak. Need proper monitoring and accountability.
S
Sarah B
The 53-61% reduction target by 2035 is ambitious! This shows how seriously South Korea is taking climate action. India should set similar aggressive targets for our auto industry.
V
Vikram M
This partnership model could work well in India where we have many small auto component manufacturers who can't afford green tech upgrades on their own. Government support is crucial.
K
Kavya N
As someone working in manufacturing, I appreciate how they're thinking about the entire supply chain. Often small suppliers get left behind in sustainability efforts. Good approach! 👍

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