Can you start by giving an overview of Hyundai Motorsport’s sustainability strategy and how it aligns with the company’s long-term vision?
Our involvement in motorsport is fundamentally driven by technology development. Motorsport provides an essential platform for testing and enhancing our capabilities, which ultimately translates into improvements in our products. This process extends beyond just technology—it also enhances the skills and knowledge of our teams. A critical aspect of this is sustainability. Improving our product necessarily means improving its sustainability. In today’s automotive industry, the impact of public policy, legislation, and taxes is significant, and sustainability has become a major competitive factor.
Motorsport helps address this by fostering agility and a unique mindset that supports quick adaptation to these regulatory shifts. This cultural aspect shouldn't be underestimated. While technology plays a key role, the cultural changes within an organization can be equally impactful, especially when we're trying to influence not just a few thousand units of a niche brand but the seven million units Hyundai Motor Group sells annually. The cultural transformation within the broader organization is where motorsport can make a lasting impact.
What are some of the specific sustainability initiatives Hyundai Motorsport has explored in rallying and customer racing?
We've been engaged in rallying for over a decade, and rallying brings its own unique sustainability challenges. We also have customer racing activities in which our customers can race modified versions of our vehicles, such as the Elantra in TCR racing. In terms of sustainability, we've been keen to push for innovation in areas like electrification. For example, when TCR proposed switching to electric vehicles, we were the first to develop an EV-TCR, despite being the only manufacturer to do so. Unfortunately, the category didn’t materialize, but this highlights our commitment to pushing for sustainable solutions in motorsport.
The same applies to the World Rally Championship (WRC). While safety has been the primary focus for many years, we now see sustainability as the next big challenge in rallying. We've been advocating for stronger sustainability measures, but it’s a complex area. Nevertheless, we're committed to continuing our work in this space, whether through innovations like electric vehicles or sustainable fuels.
With the introduction of hybrid and electric systems, what challenges do you face in balancing sustainability with performance?
It’s a difficult balancing act. On one hand, you have to cater to fans, who are deeply attached to the emotional aspects of motorsport, such as the sound of the engines. The sound creates excitement, and it’s a big part of the rallying experience. This was also a challenge in Formula One when they transitioned to turbo-hybrid engines. Rally fans in particular, who often travel long distances to watch events, are used to hearing cars approach from afar. It’s part of the drama and experience.
At the same time, we need to incorporate new technologies, like hybrid systems, in a way that doesn’t compromise the essence of the sport. Fans aren't ready for a full switch to electric vehicles, as the silence would take away from the experience. Therefore, we need to think creatively about how to maintain this emotional connection, perhaps by reinventing the sound of rally cars in the electrification era.
How has Hyundai Motorsport approached sustainable fuel development in rallying?
We’ve been working with sustainable fuels for a few years now, and it’s a promising area for motorsport. In fact, World Rally Championship was the first motorsport to adopt sustainable fuel, even ahead of Formula One, which will follow suit in the future.
This is a key story we need to tell more, as it demonstrates the potential for motorsport to lead in sustainability innovations. However, scaling up sustainable fuels is a challenge due to their cost, but they offer an exciting avenue for the automotive industry.
On the other hand, the hybrid and electric systems in rallying have been more problematic. The introduction of hybrid technology in WRC, while necessary, was arguably premature. The technology wasn’t thoroughly tested, and we’ve seen reliability issues, which puts the sport at risk. This could be considered a form of greenwashing—introducing technology just to tick a sustainability box without fully considering its viability in such extreme conditions.
Looking at your experiences in Formula One, how has that influenced your approach to WRC, particularly in sustainability?
One of the biggest lessons from Formula One is not to take anything for granted, especially when it comes to the state of a sport. I’ve seen Formula One at its lowest point, with empty grandstands and minimal media interest, and witnessed its turnaround through careful planning and execution. The same can be said for WRC. Despite its challenges, WRC remains the second-largest motorsport property in terms of audience. There's immense value in rallying that just needs to be reactivated with the right approach.
In rallying, I believe there’s an opportunity to take a different path compared to Formula One. While Formula One often focuses on more technology and more cost, rallying could instead emphasize simplicity. The core of rallying is about the drivers and the incredible challenges they face. By focusing on this and minimizing unnecessary complexity—fewer spares, fewer people, less freight—we can address the sustainability challenge in a more unique and authentic way.
What are Hyundai Motorsport’s future plans for sustainability and motorsport development in the next 2-5 years?
We are not done with rallying—despite the speculation, we will remain committed to the sport. I want to see how WRC can continue to contribute to the sustainability agenda. We will keep pushing in that direction with conviction. Alongside rallying, we’ve recently announced a new endurance racing program under the Genesis brand, which is Hyundai’s luxury arm. This program is set to kick off soon, and we’ll be making more announcements regarding it by the end of the year. Endurance racing offers a cost-efficient platform to further develop sustainable technologies.
We’re also keeping an eye on developments in other series, such as Formula E and Extreme H. These categories present intriguing opportunities, particularly in line with some of the technical architectures we’ve been exploring, like the fuel cell-based concept seen in our N74 vehicle. However, we are cautious and want to avoid gimmicks. Authenticity is key for us, and we’re looking for solutions that genuinely align with our long-term sustainability goals.
