Hyundai And The EV Crises
Hyundai has been caught up with some issues arising from EC batteries. Many people have been reporting fire incidents happening due to the batteries. As such, Hyundai has recalled the batteries back to the factory to prevent further similar occurrences.
Things like this cost a company a lot, and Hyundai is already witnessing the estimated costs the company will bear in the process. The recall process is estimated to cost about $900 million. This will be the second time something of this nature is happening, making it a noticeable thing concerning the company.
The company is also recalling some other products that have had similar issues. Most of the batteries between 2017 and 2020 have been recalled for further testing. This is to prevent any case of accident or fire outbreak. The company has decided to recall all the batteries that were created during this period. The company aims to replace them all, totaling 82000 batteries in total.
The company had been trying to utilise system updates to address the issue in the batteries. There have been several updates in times past to rectify the issue with the batteries, but that approach hasn’t seemed to work adequately. So, the company felt it’s much appropriate and effective to recall the batteries.
The company has also been in communication with the affected customers to ensure that they get relevant updates on the goings-on regarding the matter. The company stated that all customers will be reached out to and effective communication will be fostered to ensure that.
The recall news came shortly after the company launched another product. As such, the news of the battery issue came at a point when the company was trying to scale its services. This makes it crucial that such issues be addressed instantly and adequately as well.
Also, the issue comes at a time when Hyundai and LG are trying to get into the EV market. The EV market has been the new trend. However, it takes effort and adequate planning before delving into the market. This makes it important that the company takes all issues that arise seriously. This will help to strengthen the commitment of the company to surviving in the EV market and meeting the demands of the people.
Since it’s an emerging market, many people are considering the viability of companies before determining the product of which company to go for. Thus, any company that fails at this stage or continues to have issues with its products will find it difficult to scale the market.
More importantly, safety is a key consideration when it comes to choosing a product. No matter the number of products released by a company, if there’s a trend of safety issues with the products, customers will begin to stay away. Thus, if the EV battery issue continues, Hyundai will be suffering for it in the market, as customers will begin to look at different places for getting safer cars.