Hyundai, Kia to ramp up production of LPG trucks

Kia Bongo3 model [Courtesy of Kia]

South Korea’s Hyundai Motor and Kia are planning to increase their output of LPG-powered trucks in 2024, as concerns over the urea water crisis in China brings LPG trucks, which do not require urea, back into the spotlight. The duo is the sole LPG truck producer in the country.

According to sources on Sunday, Hyundai Motor and Kia have devised plans to produce more than 110,000 units of the new LPG 1-ton trucks in 2024 and shared this strategy with their partner suppliers. The production ratio between Hyundai Motor and Kia is estimated at about 60:40, with the 1-ton truck segment accounting for around 60 percent of the total registered cargo vehicles in Korea, or around 3.7 million units, and some 150,000 units added annually.

Hyundai Motor and Kia are placing significant emphasis on LPG, which has risen to prominence as the next-generation fuel in preparation for the upcoming discontinuation of “diesel trucks.”

From 2024 onwards, the country will prohibit the new registration of diesel vehicles for parcel delivery and children’s school transport purposes, leading automotive companies to unveil improved-performance LPG cargo trucks.

Hyundai Motor launched a 1-ton truck equipped with an LPG 2.5 turbo engine in November, the brand’s first release of an LPG truck in 20 years. Kia also introduced a 1-ton truck equipped with a turbo LPG engine.

Following the release of the new models, the two automotive brands plan to produce about 10,000 units of the new 1-ton LPG trucks in 2023. Cumulative orders for the new 1-ton LPG trucks totaled over 37,000 units for both companies.

LPG trucks are gaining more attention as their fuel itself is environmentally friendly and does not require urea water.

“The transition of the 150,000 units sold annually in the 1-ton cargo vehicle market to environmentally friendly fuels signifies a significant change in the commercial vehicle market landscape,” a market expert said.