During the company’s annual CEO Investor Day presentation, CEO Jaehoon Chang unveiled Hyundai’s vision and commitment to the growing demand for electric vehicles (EVs). Chang referred to this commitment as “The Hyundai Motor Way” roadmap.
As part of this roadmap, Hyundai will invest 35.8 trillion won ($28.07 billion) over the next decade in electrification, including 9.5 trillion won ($7.45 billion) dedicated to batteries. The remaining investment will be used to develop a new modular EV platform and increase the brand’s global production capacity for EVs.
Hyundai has increased its sales target for EVs to 2 million units annually by 2030, slightly surpassing its previous target of 1.87 million. Kia, a sibling brand under the Hyundai Motor Group, also plans to use a version of the new EV platform and project sales of approximately 1.6 million EVs in the same timeframe.
This target of 3.6 million EVs by 2030 aligns with Japanese automaker Toyota’s ambition of selling 3.5 million EVs within the same period.
Hyundai outlined key objectives for their strategy, including the introduction of a next-generation modular architecture for EVs, bolstering EV production capacity, enhancing battery development capabilities, and exploring future business opportunities. The company also intends to adjust its sales targets according to market demand.
Over the next decade, Hyundai will increase localized production of EVs worldwide. Their goal is to have EVs account for 34% of their global production in 2030 compared to 8% this year. Hyundai aims to achieve 75% localized EV production in the U.S. (currently at 0.7%) and 54% in Europe (currently at 7%).
A crucial element of Hyundai’s strategy is the Integrated Modular Architecture (IMA), which will replace the Electric-Global Modular Platform (e-GMP). The IMA will enable more than 80 modules to be shared across Hyundai’s lineup, irrespective of segment or vehicle type, fostering economies of scale, reducing development complexity and costs.
The IMA platform will underpin various vehicle classes, including SUVs (small and large), pickup trucks, and flagship models of the Genesis brand.
To meet the growing demand for EVs, Hyundai will adopt a two-track production strategy. This approach involves adding EV production to existing factories that currently manufacture internal-combustion and hybrid vehicles, while simultaneously expanding capacity through dedicated EV assembly lines. This strategy allows Hyundai to leverage existing infrastructure, saving on costs and ramp-up time.
Hyundai plans to invest in dedicated EV lines, with a factory in Georgia set to open in 2024 and another in South Korea slated for 2025 for both domestic and export use.
Next-generation batteries are a significant focus of Hyundai’s EV push. To reduce costs, Hyundai will introduce lithium-iron phosphate (LFP) batteries with higher energy density and improved low-temperature efficiency, expected to reach the market around 2025. Additionally, an artificial intelligence-based battery management system will provide real-time monitoring and diagnosis to prevent potential issues such as thermal runaway.
Hyundai aims to achieve over 10% profitability for EVs by 2030 through increased EV sales, the integration of the modular architecture, optimized production processes, and exploring other profitable business avenues.
In the U.S., Hyundai offers three full-electric vehicles: the Kona, Ioniq 5, and Ioniq 6. In the first quarter, Hyundai sold 5,736 units of the Ioniq 5 and 222 of the Ioniq 6.
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Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
