Hyundai Motor to accelerate electrification strategy
Photo courtesy of Hyundai Motor

Hyundai Motor to accelerate electrification strategy

South Korea’s Hyundai Motor Company has unveiled a strategic roadmap to accelerate its electrification ambition as it pursues sustainable progress for the company. Under the plan, the company aims to boost annual global battery electric vehicle (BEV) sales to 1.87 million units and a 7% global market share by 2030.

President and CEO Jaehoon Chang and other executives presented the plans to shareholders and investors, and other various stakeholders at the ‘2022 CEO Investor Day’ virtual forum last week. The company also unveiled targets for sales and financial performance to be achieved by 2030.

The roadmap for Hyundai’s battery electric vehicle (BEV) is supported by: strengthening BEV line-ups, optimizing manufacturing capacity, and securing hardware and software competitiveness. 

Hyundai also presented its mid-to long-term financial goals. The company earmarked KRW95.5 trillion (USD78.5 billion) of investment for future businesses by 2030, including KRW 19.4 trillion (USD15.9 billion) for electrification and KRW12 trillion (USD9.8 billion) for software capabilities.

By 2030, Hyundai also targets to achieve an operating profit margin of 10% or higher in EV businesses by enhancing competitiveness in hardware and software capabilities with an expanded line-up. On a consolidated basis, it aims to secure an operating profit margin of 10%.

“Hyundai is successfully accelerating its transition to electrification and becoming a global leader in EVs despite a challenging business environment caused by the global chip shortage and ongoing pandemic,” said Chang. “Along with our seamless efforts to improve EV value, Hyundai Motor will continue to secure its business sustainability as a ‘Mobility Solutions Provider’ through advanced technologies of not only hardware but also software.” 

Strengthening BEV line-ups

Hyundai Motor raised the annual BEV sales target to 1.87 million units by 2030 from previously announced 560,000 units by 2025. 

The company aims to achieve a 7% market share in the overall global BEV market. Hyundai plans to introduce 17 BEV models; 11 Hyundai marque models along with six models from Genesis luxury brand by 2030 as it seeks to expand its BEV spectrum. The new Hyundai BEV models will include three sedan models, six SUVs, one light commercial vehicle as well as one new type model. This year, Hyundai begin sales of IONIQ 6, followed by IONIQ 7 in 2024.

Hyundai’s EV manufacturing capacity

Hyundai Motor aims to establish a high efficiency manufacturing process for BEV production to accelerate its transition into electrification. Hyundai Motor Global Innovation Center in Singapore (HMGICS), the cornerstone for innovation in the company’s mobility value chain, will build a human-centered manufacturing innovation platform. The platform is expected to bring dramatic innovation in production efficiency through a flexible production system, advanced level automation and digital twin technology. The innovation will be expanded to global plants in the future.

Beyond existing BEV production facilities centered in Korea and the Czech Republic, Hyundai plans to gradually expand its BEV manufacturing bases, starting with an Indonesian plant that recently started operation. The Indonesian plant will start BEV production this year to help expand production volume. 

As BEV production bases expand, the company is trying to increase the local procurement rate of batteries through strategic alliances with battery companies in major regions, including the U.S., to secure sufficient battery supply. Through these alliances, the company expects to obtain more than 50 percent of its next-generation lithium batteries for BEVs starting in 2025.

In addition, Hyundai will also diversify battery sourcing to consolidate the competitiveness of future BEVs. The company has secured sufficient battery supply to meet its sales targets by 2023. Hyundai plans to continue cooperation with various battery companies with an aim of securing 170 GWh of batteries for its models, including Genesis luxury brand by 2030.

Regarding the next-generation batteries, such as solid-state battery, Hyundai is cooperating with various global partners to improve energy density and cost efficiency.