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Hyundai Motor Company President and CEO Chang Jae-hoon introduces the 10-year "Hyundai Way" strategy at the 2024 Hyundai CEO Investor Day, Wednesday. (Hyundai Motor Group) |
Hyundai Motor Company is making a bold move towards the future with an investment of 120.5 trillion won ($90.3 billion) over the next decade. This investment is designed to keep Hyundai agile as mass adoption of electric vehicles remains uncertain.
Key initiatives include the introduction of advanced hybrid systems, an expanded range of hybrid vehicles, and a new category of vehicles -- extended range electric vehicles, or EREVs -- that combine the strengths of both internal combustion engines and EVs.
The company is also entering new mobility sectors, such as launching a new business to supply autonomous vehicles to software companies.
These strategic plans were announced during Hyundai’s CEO Investor Day on Wednesday, where the company outlined its new long-term strategy, "Hyundai Way." The updated strategy includes a 10 percent increase in investment compared to last year’s 10-year plan.
“Under the Hyundai Way, we’re committed to staying nimble in a volatile market, using our unique flexibility to secure long-term leadership in mobility and energy,” said Chang Jae-hoon, president and CEO of Hyundai Motor Company.
The breakdown of this investment includes 54.5 trillion won allocated to research and development, 51.6 trillion won for capital expenditures, and 14.4 trillion won for strategic investments.
Hyundai’s core strategy aims to enhance profitability across its internal combustion, hybrid, and EV segments. The company has set a goal to achieve a consolidated operating margin of over 10 percent by 2030.
A major part of this strategy is expanding Hyundai’s hybrid vehicle lineup from seven models to 14 by 2030. These hybrids will cover a range of segments, including compact, large and luxury vehicles, with hybrid options available for nearly all Genesis models.
In addition, Hyundai plans to introduce the next-generation hybrid system, TMED-II, to mass-produced vehicles starting January next year. This system will deliver improved performance and fuel efficiency without increasing costs. Future hybrids will also feature advanced technologies like smart regenerative braking and vehicle-to-load capabilities, which allow vehicles to power external devices.
By 2028, Hyundai aims to boost hybrid sales to 1.33 million units annually, a 40 percent increase from 2023.
To address the slowing pace of EV adoption, Hyundai will launch EREVs in 2026. EREVs operate primarily as electric vehicles but feature an internal combustion engine that generates electricity to recharge the battery, significantly extending the vehicle's range.
Hyundai has developed a new power system for these vehicles, enabling four-wheel drive with just two motors. EREVs will offer a range of over 900 kilometers on a full charge, making them a viable bridge between traditional internal combustion engines and fully electric vehicles.
Mass production of EREVs is set to begin in North America and China in late 2026, with sales starting in 2027. In North America, Hyundai will focus on D-class midsize sport utility vehicles under the Hyundai and Genesis brands, targeting annual sales of over 80,000 units. In China, more affordable C-class EREVs are expected to sell 30,000 units per year.
Hyundai is also heavily investing in battery technology to enhance EV performance, safety, and cost efficiency. By 2030, the company plans to develop its own entry-level nickel-cobalt-manganese battery that reduces material costs by adjusting nickel content. Hyundai also aims to improve battery energy density by over 20 percent by 2030.
Battery safety remains a top priority for Hyundai, with plans to enhance pre-diagnosis technology in its battery management system and develop systems to prevent heat transfer between cells in the event of a fire.
Another pillar of the Hyundai Way strategy is the “Mobility Game Changer” strategy. It focuses on advancing autonomous driving technology and software-driven vehicles. With a 22.1 trillion won investment, Hyundai is developing Level 4 autonomous driving systems.
As part of this initiative, Hyundai will launch a "foundry" business to supply customizable autonomous vehicle platforms to software companies. This will enable developers to create specialized autonomous vehicles, while Hyundai expands its robotaxi services in key global markets.
Hyundai is preparing for the software-defined vehicle, or SDV, era with a next-generation infotainment system based on Android Automotive, set to debut in 2026. Additionally, the SDV Pace Car, featuring advanced autonomous driving and AI capabilities, will be introduced later that year for testing and validation.
Lastly, the company's “Energy Mobilizer” strategy involves a 5.7 trillion won investment to enhance hydrogen technology and build a comprehensive hydrogen ecosystem. Through its HTWO brand, Hyundai aims for net-zero carbon emissions by 2045.
