Hyundai Motor Company has unveiled an ambitious long-term strategy, known as the ‘Hyundai Way,’ aiming to significantly enhance its electric vehicle (EV) and hybrid offerings, develop cutting-edge battery and autonomous vehicle technologies, and cement its role as a leader in the global energy transition. The plan was presented during the company’s 2024 CEO Investor Day in Seoul, where Hyundai detailed its vision for the future of mobility, underscoring its commitment to agility in responding to shifting market conditions and its focus on electrification.
Strategic Growth Targets
Central to Hyundai’s strategy is an ambitious sales target: the company is aiming to achieve 5.55 million annual global sales by 2030, representing a 30% increase from 2023 levels. A substantial portion of this growth will be driven by EVs, with Hyundai setting its sights on selling 2 million EVs per year globally by the end of the decade. This target underscores the company’s confidence in the rising demand for electric mobility and its ability to capture a significant share of the global EV market.
In addition to ramping up its EV production, Hyundai plans to introduce a new type of electric vehicle, the Extended Range Electric Vehicle (EREV), which is designed to address concerns about range anxiety—a common barrier to EV adoption. These EREVs will feature a driving range of over 900 kilometres on a single charge, a significant improvement over current EV capabilities. The company plans to roll out these models in key markets such as North America and China by 2027, with mass production set to begin by the end of 2026.
Expanding the EV Lineup
Hyundai’s commitment to electrification is further evidenced by its plan to offer a comprehensive lineup of 21 EV models by 2030. This lineup will span a wide range of vehicles, from affordable options aimed at the mass market to luxury and high-performance models under its Genesis brand. This strategy not only positions Hyundai as a key player in the global EV market but also allows it to cater to a diverse customer base with varying needs and preferences.
The company’s IONIQ brand, which has already made significant inroads into the EV market with its mass-market offerings, will be at the forefront of this expansion. Moreover, Genesis, Hyundai’s luxury division, will continue to evolve, offering high-performance EVs that build on the brand’s established reputation for quality and innovation. This move is expected to further solidify Hyundai’s position in the luxury EV segment, catering to customers who seek both performance and prestige.
Enhancing Hybrid Offerings
Disappointingly, Hyundai is also investing in its hybrid vehicle lineup. The company plans to introduce an enhanced next-generation hybrid system, which promises improved performance and fuel efficiency. By 2030, Hyundai aims to expand its hybrid offerings to 14 models, up from the current seven. This expansion will include the Genesis brand, ensuring that even luxury car buyers have access to hybrid options during the transition to fully electric vehicles. Let's hope that hybrids and hydrogen cars soon get consigned to the same box in history.
Autonomous Driving and Mobility Innovation
Hyundai’s strategic vision extends beyond vehicle electrification. The company is also positioning itself as a leader in autonomous driving and smart mobility solutions. It plans to commercialise its autonomous driving vehicle foundry business, supplying autonomous vehicles to global software firms specialising in this technology. This initiative represents a significant step towards Hyundai’s goal of becoming a major player in the mobility-as-a-service (MaaS) sector, leveraging its expertise in vehicle manufacturing and software integration.
Battery Technology Leadership
Battery technology remains a critical focus area for Hyundai, as it seeks to internalise battery development and enhance its competitiveness in the EV market. The company is working on developing more affordable NCM (nickel-cobalt-manganese) batteries, which are expected to offer a balance between performance and cost. Hyundai is also committed to advancing battery safety technologies, ensuring that its EVs are not only high-performing but also safe and reliable.
In a bid to strengthen its leadership in next-generation battery technologies, Hyundai is accelerating the development of solid-state batteries, which promise higher energy density and improved safety compared to current lithium-ion batteries. The company plans to open a new battery research facility at its Uiwang Research Institute later this year, which will serve as a hub for ongoing innovation in this field.
Hyundai’s battery strategy also includes the adoption of the cell-to-vehicle (CTV) structure, which integrates the battery directly into the vehicle’s body. This approach is expected to enhance battery performance while reducing the overall weight of the vehicle, leading to improved efficiency and range.
Investment and Financial Strategy
To support its ambitious goals, Hyundai has announced a significant investment of KRW 120.5 trillion (approximately £71 billion) through 2033. This investment will be directed towards research and development (R&D), production capacity expansion, and other strategic initiatives outlined in the Hyundai Way. The company’s financial strategy also includes a target shareholder return (TSR) of over 35%, with a share buyback scheme worth up to KRW 4 trillion (around £2.4 billion) scheduled for 2025 to 2027.
Hyundai’s CFO, Seung Jo Lee, highlighted that these financial strategies are crucial to successfully executing the Hyundai Way. By maintaining strong profitability and delivering consistent returns to shareholders, Hyundai aims to secure the financial stability needed to achieve its long-term objectives.
Manufacturing Innovation
Hyundai is also investing in manufacturing innovation to ensure that it can meet its ambitious production targets. The company’s Hyundai Motor Group Innovation Centre Singapore (HMGICS) serves as a test bed for smart manufacturing techniques, integrating advanced technologies such as robotics, artificial intelligence, and vision systems. These innovations are being rolled out across Hyundai’s global manufacturing network, including new facilities in North America, China, and India.
In particular, Hyundai’s new production facility in India, acquired through the purchase of the Pune factory, will play a key role in expanding the company’s production capacity. This facility is expected to produce up to 1 million units annually, helping Hyundai meet the growing demand in emerging markets.
Global Expansion
Hyundai’s global expansion strategy includes a focus on rapidly growing markets in the Middle East, Asia-Pacific, and Latin America. The company is actively expanding its presence in these regions through strategic partnerships and the establishment of new production facilities. In Saudi Arabia, for example, Hyundai is constructing a new production plant as part of its efforts to regionalise its product lineup and better serve local customers.
The company is also leveraging its strong relationships with key partners, such as LG Energy Solution, to enhance its global supply chain and ensure that it can meet the rising demand for EVs and hybrids in key markets.
Hyundai’s Hyundai Way strategy represents a bold vision for the future, one that positions the company as a leader in the global shift towards electrification and sustainable mobility. By setting ambitious sales targets, investing heavily in R&D, and leveraging its manufacturing expertise, Hyundai is well-positioned to navigate the challenges of the energy transition and emerge as a top-tier global player in the EV market. With a focus on flexibility, innovation, and customer-centricity, Hyundai is poised to lead the way in the next era of automotive and mobility solutions.
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