Interview: Hyundai looks to partnerships, tech and hydrogen to drive growth

Cheol-gon Choi, President and CEO at HD Hyundai Construction Equipment. Image: Hyundai

There is no doubt that one of these leading OEMs is Hyundai Construction Equipment (Hyundai CE). The brand is owned by HD Hyundai and has a sister company in Develon (formerly Doosan) – both Hyundai and Develon are comfortably in the global top 25 of OEMs by sales and, being sister companies, are able to share technologies and processes.

At Bauma Munich 2025 Cheol-gon Choi, President and CEO at HD Hyundai CE, sat down with Construction Briefing for a wide-ranging interview that touched on many subjects. Mr Choi shared during the interview that by the time of the next Bauma Munich he will be 70 years old – something that was hard to believe given his obvious energy and enthusiasm for the role.

One of the subjects discussed was how the brand grows in the razor-sharp competitive world that the top OEMs operate in and, while every company wants to sell more products, he said that this is only part of the equation.

“It’s not just about producing more products, it’s about producing products that are smarter, that have more innovative technology,” he says through an interpreter.

“We are upgrading our smart facilities back in Korea at the moment to make this possible. We want to have a global manufacturing footprint. We are increasing our investments a very big amount to prepare for the future rebound, especially in technological investments, strengthening our dealer network and increasing our production capabilities. Technological development doesn’t happen overnight; it will require a lot of investment.”

Taking on Chinese OEMs

One of the challenges facing Hyundai CE and other OEMs has been the rise of China-based manufacturers which, over the last decade, have been nothing short of meteoric in some cases. The answer to this threat, according to Mr Choi, is technology.

“I think that to compete with this low-cost product from China, the only possible way is to deal with our own qualities. So even though China is trying to enter the market with its low-price products, we will be combating and overcoming these difficulties with better quality and better productivity,” he says.

Another way for the company to grow is by expanding its product range. Hyundai CE has traditionally been known for larger equipment but an increasing focus – following market trends – is to expand its compact equipment range. To that end, the OEM has recently introduced mini excavators, compact loaders and skid steer loaders.

The slightly unusual company structure, where Hyundai CE and Develon are sister companies, brings advantages when it comes to technological innovation, asserts Mr Choi.

Hyundai are increasingly focused on the compact machinery segment. Image: Hyundai

“We have been creating synergies by developing technologies together. A result of our cooperation is the new generation model that we are showcasing at Bauma. I don’t think a sharing platform is seen a lot in the construction equipment market. This is a very unique collaboration between the two brands, and we have applied around ten different new technologies to our products.”

The CEO goes onto share how the co-operation works practically. “Since the acquisition the first thing that we did is exchange manpower. The main reason is because we thought understanding each other was the key in co-operating. On the management level, we have exchanged about 60%,” he says.

“Next was integrating our purchasing departments so we can more efficiently manage our suppliers. We actually shared our parts before creating our new products and integrated common functional organizations. Our advanced technology teams and divisions have all been transferred to HD Hyundai XiteSolution, which is the intermediary.”

Alternative power solutions

Electric power has taken a large chunk of R&D spending at OEMs – not to mention column inches in the press – but, increasingly, there is a train of thought that hydrogen could well be one of the main alterative power sources of the future. Hyundai has been working on the HW155H, a 15-tonne hydrogen powered wheeled excavator for several years and there are rumours it could even be commercially available by the start of 2027.

Hydrogen brings great benefits but also issues to be overcome. According to Mr Choi, one of the biggest is the delivery of it. “The most important part is how we’ll be delivering hydrogen energy. That’ll be the key part. So, the main issue that we need to overcome is how we’ll be able to provide the charging.”

Hyundai’s hydrogen powered wheeled excavator. Image: Hyundai

A good example to illustrate how far hydrogen has to go before it is ready for mass commercial use is provided during the interview, when the conversation turns to the HW155H.

Hyundai CE wanted to demonstrate the hydrogen-powered excavator in every one of their demonstrations during the week of Bauma but the Munich fire brigade would only allow the refuelling truck to have 50kg of hydrogen in it – rather than the 150kg Hyundai wanted – meaning that it was not possible to always demonstrate the excavator. As Mr Choi says, with a ghost of a smile on his face, “The city hall said that there may be some dangers with this, so the Munich Fire Department, they forbid us.”

As well as hydrogen fuel cells the OEM is developing hydrogen fuel engines and working on a technology where the user can change the type of energy source based on their needs, so they could switch from hydrogen to diesel. As all major OEMs are, Hyundai is also working on electric models.

In three years’ time, hydrogen-powered equipment might well be the talking point of the next Bauma. Few would bet against Hyundai being a leading player in this conversation and Mr Choi once more taking the journey to Munich to watch it all play out. By then, Munich’s fire brigade may even be more relaxed with the storing of hydrogen, which would be one example of the power source’s increasing acceptance.