Why Hyundai believes this moment will be a turning point in its history

Sanho Shin, CEO, Hyundai Construction Equipment Europe (Image: KHL Group)

Sanho Shin has been in the post as CEO of Hyundai Construction Equipment Europe since January, taking over the top job at a time when the company is poised to accelerate its well-publicised ambition to be among the top five OEMS in the region.

The coming months will see the launch of multiple new construction and demolition machines, plus many more updates, from the South Korean-based OEM, which first entered this market in 1995.

Some of these new machines were unveiled during the second week of April when the European headquarters in Belgium opened its doors to present the latest additions to the Next Generation line up of HX models, along with the European premiere of two new skid steer loaders and a compact tracked loader, as well as a 45-tonne articulated dump truck and a micro excavator.

Bold ambition

During his welcome presentation to the press, Mr Shin proudly outlined Hyundai’s vision to increase its revenue from a projected €5.8 billion in 2026 to €8.7 billion in 2030.

This is equivalent to an annual growth rate (CAGR) of 12%, which he admits is challenging, but as he says with a glint in his eye, “We have big plans to scale up.” Perhaps based on a convincing 40% year-on-year revenue increase in 2025 in Europe, he has reason to feel celebratory.

“When it comes to Europe, the figure of 40% is not going to be a short-term result,” he says, adding that the UK is one of the markets where the company expects to grow very fast in 2026, on the back of the new ‘premium’ dealer network established last year.

“I expect our Q1 performance to continue throughout the year, so we are already exceeding the 12% target. Looking further afield across the global business, we still have a lot of the spaces to grow more, including many emerging markets and in southern Europe too.”

He also believes that with the Next Generation portfolio, Hyundai is now well placed to meet the specific requirements of the Benelux countries and the Nordics, where very high standards for machine configuration are expected.

When asked about his top priority as new CEO, Mr Shin is clear that his mission is to make the new excavators a resounding success.

“The priority is to ensure a successful launch of the Next Generation machines, because this is not just the release of a new model; it must be a turning point in our history. With this launch, we are introducing entirely new electric-hydraulic technology, which is central to the core functionality of the construction equipment.

“Once we have completed the launch in Europe, we will turn step by step to other regions, such as America and the emerging markets, to ensure the Next Generation technology is positively perceived and adopted,” he says.

Hyundai introduced several new machines to the European market in early April (Image: KHL Group)

Plugging the gaps

Finding segments with opportunity for growth is another key priority.

Hyundai recognises the strong competition it faces in the saturated compact equipment market, says Mr Shin, explaining that the company is exploring more specialised applications for its heavy equipment offering.

“We decided to focus on specialised applications to drive further growth in the heavy equipment segment because general machines will not help us reach our goal,” he says when asked why a new high-reach demolition excavator, the HX520A HRD, is among the latest tranche of introductions.

Competition from Chinese manufacturers is another reason why excelling technologically is important for Hyundai. “This is the right time to look for additional growth opportunities, particularly in areas that, I would say, Chinese players cannot easily access.

“Applications such as demolition require high level technology and product development. As part of our strategy to differentiate ourselves, we have also launched several material handlers, and we are planning to introduce additional types in the future.”

He also reveals that there is a broad understanding across the entire company that there are gaps in the portfolio and that these will be addressed over the next two to three years.

This includes plans to introduce a 14-tonne reduced tail swing (short tail) excavator, as Hyundai defines this particular market trend as very strong. Currently under development, this excavator model is scheduled for launch in 2028.

Hyundai’s new HT100V compact tracked loader (Image: KHL Group)

Alternatives to diesel

Like most OEMs, Hyundai is actively working to expand its range of fully electric machinery in response to market demands for more sustainable ways to operate.

However, Mr Shin points out that interest has been waning in some countries in step with changes in government policies and interest rates.

“The interest in electric equipment fluctuates, even within Europe there is quite varied demand. Norway and the Netherlands are still seeing fairly high demand, although the Dutch government is looking to reduce subsidies and this is already affecting the appetite. Meanwhile Belgium is still more or less focused on the diesel.

“In Norway, the government is trying to increase machine requirements, so that’s one of the reasons we are developing a new product line up.”

He reveals that Hyundai plans to launch three additional electrified machines, not only mini excavators, but also a mid-size crawler excavator and a wheeled excavator. Still, Mr Shin agrees that cost is the main barrier to adoption, especially in the rental market.

However, when it comes to other alternatives, such as Hyundai’s hydrogen-driven machine, this is still very much at the prototype stage, he states. “We have a long way to go, any launch date will depend on the maturity of the market and the infrastructure available in the future.”

But ever the optimist, he smiles and says, “We will never give up on this hydrogen power alternative; our engineers are still working on the machine, continually upgrading it.”

Room for improvement

Towards the end of the interview, the conversation turns to the company itself. With such ambitions to reach the top five, does he think there is still improvements to be made in terms of the market perception of Hyundai as a brand?

Mr Shin answers without hesitation, “Yes improvement must be made, but the construction industry is not easy in the sense that perceptions don’t change quickly.

“However, we are right on track; but first we must improve the perception of our products, and we will do exactly that with the Next Generation excavators,” he concludes.