Hyundai, Kia Aim To Use 25 Percent Less Fuel By 2020: Report

Korea’s Hyundai and Kia partners will attempt to cut their combined average fuel consumption by 25 percent before the year 2020.

The decision follows the pair’s $350 million in combined penalties in the US due to exaggerated fuel economy figures on some models, and a need to meet stricter emissions targets in Korea and other markets.

Reuters reports both carmakers have been losing market share in Korea to imported brands with more fuel-efficient diesel engines. 

A statement from Hyundai said Group Chairman Chung Mong-Koo called for the Korean carmakers to ‘lead the world’ in average fuel consumption by 2020.

To achieve this target, development of fuel-efficient engines and transmissions will be stepped-up over the rest of this decade, and more ‘green’ models with low or zero CO2 emissions will feature in future Kia and Hyundai line-ups.

The pair will reportedly build lighter cars and focus on small turbocharged petrol engines to improve efficiency, with up to seven of the group’s combined ten petrol and diesel engines set to be replaced or heavily revised by 2020.