Insights from Hyundai's revised long-term business plan
Hyundai Motor Co. has announced a comprehensive electrification strategy, dubbed "Hyundai Way," which includes the production of extended-range electric vehicles (EREVs) and the expansion of its hybrid offerings. The South Korean automaker aims to become more competitive in the global EV and hybrid vehicle segment and achieve equal profitability across its entire powertrain lineup by 2030.
The strategy, shared at Hyundai's 2024 CEO Investor Day in Seoul, includes the launch of new EREVs, which use an electric powertrain for propulsion and a small internal combustion engine to charge the vehicle's battery. Hyundai plans to manufacture these EREVs under the Ioniq brand, with the first models set to roll off production lines in North America and China by the end of 2026. Sales are expected to begin in early 2027.
Hyundai is targeting a range of up to 559 miles (900 km) for its future EREVs, viewing the technology as a bridge to full EV adoption. The company plans to produce 80,000 units of EREVs in North America in 2027, with two models slated for launch – one under the Hyundai brand and one under its luxury brand Genesis.
As part of its electrification push, Hyundai is investing KRW 120.5 trillion ($90 billion) through 2033 to support its initiatives. The automaker aims to achieve global sales of 5.5 million vehicles annually by 2030, a 30% increase from its previous 4.2 million unit sales target in 2023. By 2028, Hyundai's revised goal is to sell 1.3 million hybrid vehicles globally, a 40% jump from its original target announced last year.
To boost profitability, Hyundai is planning continuous cost enhancements for EVs and the introduction of new EREV models. The company is aiming for a profit margin of 9 to 10% in 2027 and over 10% in 2030. As part of these efforts, Hyundai plans to initiate a share buyback plan of up to KRW 4 trillion from 2025 to 2027.
Future hybrid vehicles will be equipped with advanced technologies, including smart regenerative braking and vehicle-to-load bi-directional capabilities. Hyundai also plans to expand its hybrid offerings from seven to 14 models, with new hybrid models under its luxury brand Genesis.
In addition to the electrification push, Hyundai is opening its Georgia factory ahead of schedule later this year to support production of new electrified vehicles. The factory, known as "Metaplant America," will produce both hybrid and fully electric models.
Hyundai's new electrified strategy is a significant step towards the automaker's goal of becoming more competitive in the global EV and hybrid vehicle segment. With its focus on EREVs, advanced technologies, and a commitment to equal profitability across its powertrain lineup, Hyundai is poised to make a strong impact in the electrified vehicle market.
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