Hyundai Motor Company announced on 4 December a bold roadmap to secure its position as a frontrunner in the future mobility industry. Under the new roadmap, named Strategy 2025, the company will foster smart mobility device and smart mobility service as two core business pillars, and the synergy between the two pillars is expected to facilitate the company’s transition into a smart mobility solution provider.
The smart mobility device business will supply products optimized for the services and lay the groundwork to help foster the service business. On the other hand, the smart mobility service business will provide personalized contents and services on the devices to help secure a broader customer base.
Hyundai’s plans for smart mobility device include a wide range of product groups beyond automobiles such as personal air vehicle (PAV), robotics, and last mile mobility. Hyundai will reinforce its manufacturing capabilities to build products that offer customers a seamless mobility experience.
Hyundai Motor will develop the urban air mobility (UAM) platform business by combining PAV and mobility services. Smart mobility service is a new area of business for Hyundai that will be fostered as a key strategic pillar for future businesses. Services and contents will be personalized and offered through an integrated platform to maximize value for customers.
The two pillars sit atop three key directions that the company has defined: enhancing profitability in internal combustion engine (ICE) vehicles, securing leadership in vehicle electrification, and laying the groundwork for platform based businesses.
To materialize Strategy 2025 on the device side, Hyundai will aim for growth that is balanced and steady, seeking balance between markets as well as models while prioritizing long term sustainability over short term targets.
The company also plans to boost profitability by simultaneously pursuing enhanced value for customers and innovations in cost structures. In particular, Hyundai aims to secure leadership in electrification by selling 670,000 electric vehicles annually and become one of the world’s top three manufacturers of battery and fuel cell EVs by 2025.
On the smart mobility service side, the company will aim for a business model that combines product and service and launch an integrated mobility platform to offer customers personalized content and services.
To this end, Hyundai will earmark KRW61.1 trillion (USD51.4 billion) of investment until 2025 for research and development (R&D) and further exploration of future technologies. In the same timeframe, the company will target an operating margin of 8% in its automotive business and aim for a 5% share of the global vehicle market.
Separately, Hyundai announced plans to conduct a KRW300 billion (USD252.8 million) share buyback by February 2020 as part of its continuous efforts to boost shareholder and stakeholder value and enhance transparent communication with the market.