Hyundai Motor Company has declared that it will lead the automotive industry and leap to become a top-tier global player in the future mobility market based on its competitiveness in electric and hybrid vehicles.
Over the next decade, Hyundai plans to invest over 12 trillion won annually, focusing on innovating its vehicle manufacturing technologies while expanding into various mobility businesses and strengthening its role as an energy provider, making a concerted effort towards an early transition to a hydrogen society.
On the 28th (Wednesday), Hyundai hosted the ‘2024 CEO Investor Day’ at the Conrad Hotel in Yeouido, Seoul, for investors, analysts, and credit rating agency representatives, announcing the new long-term strategy ‘Hyundai Way’ aimed at becoming a smart mobility solutions provider.
The event, which was livestreamed online (link), featured presentations from CEO Jang Jae-hoon, Global Chief Operating Officer Jose Munoz, Vice President of the Global Strategy Office Kim Heung-soo, Vice President of Global Commercial & Hydrogen Business Ken Ramirez, General Manager of Electrification Energy Solutions Kim Chang-hwan, and General Manager of Planning and Finance Lee Seung-jo, who explained the mid- to long-term strategies.
At this occasion, Hyundai announced the start of a new challenge to advance as a future mobility brand.
From 2024 to 2033, Hyundai is set to invest a total of 120.5 trillion won to actively support the implementation of the ‘Hyundai Way.’ This amount represents a 10.1% increase compared to the 109.4 trillion won announced at last year’s CEO Investor Day for the 2023-2032 period.
CEO Jang Jae-hoon explained, “The Hyundai Way is a strategy aimed at creating a new future centered around mobility and energy, responding promptly to the market with Hyundai’s unique flexible response system to secure sustainable leadership amidst uncertain market conditions.”
Jang further stated, “Hyundai will go beyond vehicle manufacturing and strengthen its position as a game changer by expanding into various mobility sectors. We will also enhance our role as an energy provider to ensure continuous global top-tier leadership throughout the energy transition period.”
■ Introduction of Next-Generation Hybrids and EREV, Establishment of Complete Electric Vehicle Lineup
Through the long-term strategy ‘Hyundai Way,’ Hyundai aims to achieve annual sales of 5.55 million units, including Genesis, by 2030. This volume represents an increase of over 30% compared to sales figures in 2023, with plans to continuously expand production facilities at global sites to build an additional one million units of production capacity.
The plan includes selling 2 million electric vehicle models by 2030, accounting for approximately 36% of total vehicle sales, with specific targets of 690,000 units in North America and 467,000 units in Europe.
Hyundai has designated ‘Hyundai Dynamic Capabilities’—representing its core competencies aimed at responding flexibly to rapidly changing market conditions and securing long-term competitive advantages—as a key strategy to achieve the ‘Hyundai Way.’
This concept encompasses ‘Hyundai Motor Way,’ announced at last year’s CEO Investor Day, centered on production flexibility. Hyundai plans to respond proactively to the current market environment’s slowdown in electrification and simultaneously focus efforts on enhancing EV competitiveness based on existing capabilities.
First, Hyundai will improve its self-developed hybrid system, enhancing its competitiveness to actively meet the rapidly growing demand for hybrid vehicles.
Hyundai plans to expand its hybrid offerings from 7 models to 14, applying its hybrid system, previously focused on mid-size and standard classes, to small, large, and luxury segments, including providing hybrid options across all Genesis models except dedicated electric vehicle models.
Additionally, Hyundai aims to apply the next-generation hybrid system TMED-II, which significantly improves performance and fuel economy over the existing TMED system, to mass-produced vehicles starting January 2025. TMED-II will maintain a cost level comparable to the existing system while enhancing performance and efficiency, gaining an edge over competitors.
Future mass-produced hybrid vehicles will also feature premium technologies specialized for hybrids such as smart regenerative braking and V2L (Vehicle to Load) capability, enhancing product appeal.
Building on its fortified hybrid competitiveness, Hyundai plans to significantly increase hybrid sales, targeting 1.33 million units by 2028—an approximately 40% increase compared to last year’s global sales plan.
To achieve this, Hyundai is actively utilizing factories at key global locations to introduce a mixed production system through hybrid vehicle models and secure a parts supply chain. Notably, the new factory, ‘Hyundai Motor Group Metaplant America (HMGMA),’ set to launch operations in Georgia this year, will not only produce electric vehicles such as the Ioniq 5 and the large electric SUV Ioniq 9 but also hybrid vehicles, allowing for a quicker response to the North American market’s hybrid demand.
Hyundai also plans to introduce EREV (Extended Range Electrified Vehicle) as a second strategy to respond to the slowdown in electrification. EREV leverages the benefits of both internal combustion engines and electric vehicles, driving electric motors while using an engine to generate electricity for battery charging. Hyundai has developed an independent new power system (PT/PE) to enable all-wheel drive using two motors.
By maximizing the use of existing engines and reducing the battery capacity—responsible for a significant portion of costs—by about 30%, Hyundai aims to secure cost competitiveness for EREV compared to comparable electric vehicles. Specifically, they are developing EREV to target a competitive selling price compared to premium plug-in hybrids (PHEVs).
Furthermore, Hyundai intends to apply unique driving characteristics found only in electric vehicles to EREV, enabling over 900 km of driving on a full charge to facilitate its role as a bridge in the transition toward electrification.
Production of EREV is planned to commence in North America and China by the end of 2026, with sales starting in 2027. In the North American market, Hyundai plans to prioritize deploying D-class (mid-size) SUV models from both the Hyundai and Genesis brands, targeting annual sales of over 80,000 units.
Using a cost-effective C-class (compact) platform, Hyundai plans to sell over 30,000 units of EREV annually in China and will consider EREV sales in other regions based on future market conditions.
Through these initiatives, Hyundai aims to respond to market demands with hybrids and EREV while securing profitability, gradually expanding electric vehicle models by 2030, anticipating a recovery in electric vehicle demand. Their plan includes establishing a full lineup of electric vehicles ranging from economical EVs to luxury and high-performance models, with a target of expanding to 21 electric vehicle models, providing consumers with various options as they lead into the full electric vehicle era.
CEO Jang Jae-hoon stated, “In the electrification era, Hyundai is distinguished as a unique company that quickly introduces all-electric vehicle lineups, encompassing not only mass-market brands but also luxury and high-performance models. Based on our accumulated superior technologies and ongoing innovations, Hyundai will continue to prepare for the electrification era that lies ahead and lead the electric vehicle market.”
■ Strengthening Battery Capabilities and Insourcing to Secure EV Competitiveness
Hyundai is also actively pursuing battery capability enhancement to secure the performance, safety, and cost competitiveness of electric vehicles. As a global company uniquely possessing battery systems across the entire lineup of internal combustion, hybrid, electric, and hydrogen fuel cell vehicles, Hyundai aims to enhance battery cell competitiveness based on its insourced battery development capabilities and continually improve battery safety technology to deliver customer value.
By 2030, Hyundai plans to develop a new affordable NCM (Nickel-Cobalt-Manganese) battery to provide customers more diverse solutions. By adjusting the nickel proportion, the affordable NCM battery can reduce material costs compared to existing NCM batteries. Hyundai will also persist in improving battery energy density, targeting an increase of over 20% by 2030.
Hyundai is consistently advancing battery safety technology. The current battery management system (BMS) features pre-diagnosis technology for battery anomalies, which will be enhanced, and efforts will be focused on ensuring the safety structure of battery systems. Specifically, they plan to develop and apply technology to prevent thermal transfer between battery cells in the event of a fire caused by external shocks.
Through insourcing battery development capabilities, Hyundai plans to introduce a battery CTV (Cell to Vehicle) structure optimized for Hyundai vehicles. In this integrated CTV structure of battery and body, parts will be reduced, battery density improved, resulting in a 10% decrease in battery system weight and material costs, while advanced cooling technologies will boost thermal transfer performance by up to 45%.
Additionally, Hyundai plans to accelerate the development of next-generation batteries, including solid-state batteries, at the new battery research facility set to be completed at Hyundai’s Uiwang Research Institute by December this year.
■ Innovating Mobility Experience through Advanced Software Technologies
Hyundai has introduced the second detailed strategy for executing the long-term strategy ‘Hyundai Way’ as ‘Mobility Game Changer,’ focusing on developing SDVs (Software-Defined Vehicles) and various new mobility businesses to lead changes in the mobility ecosystem.
In line with this, Hyundai is persistently advancing autonomous driving technology. To enable the implementation of safe and exceptional autonomous driving capabilities, Hyundai has established a system that collects autonomous driving data while automatically training AI models and is developing reliable autonomous driving computing hardware to ensure safety under any circumstance.
Building on this foundation, Hyundai plans to implement an ‘End-to-End deep learning model’ that performs perception, judgment, and control for autonomous vehicles all at once, with an expansion to a solution capable of autonomous driving level 4, which requires no driver intervention while driving.
Hyundai will leverage its advanced autonomous driving technology along with top-tier global automotive development capabilities and manufacturing competitiveness to propose a foundry business for selling autonomous driving vehicles to various autonomous driving software companies.
By platformizing the essential elements for implementing level 4 autonomous driving and supplying the autonomous driving vehicle platform to autonomous driving software developers, these software companies will be able to receive specialized autonomous vehicles tailored to their needs and commercialize the service. Hyundai also plans to expand its robotaxi service, centered around Motional’s autonomous driving capabilities, into diverse markets across the U.S., Europe, and Asia-Pacific.
Hyundai expects a variety of in-vehicle services to emerge as the SDV era intensifies. In preparation for this, Hyundai is building next-generation infotainment systems and an open ecosystem to provide user-centered environments.
To this end, Hyundai is developing various central display ratios based on the infotainment operating system (OS) ‘Android Automotive,’ which already has many users and developers, with plans to sequentially apply this in mass-production vehicles starting in the first half of 2026.
In the second half of 2026, Hyundai will unveil the SDV Pace Car, equipped with a vehicle-based high-performance computer architecture (computer system), implementing enhanced autonomous driving and AI functionalities to demonstrate new mobility services and business models. Subsequently, SDV technology and services will be gradually expanded to all vehicle models, thereby enhancing mobility experiences in all Hyundai offerings. [2: Vehicles produced in small quantities for verification]
■ Commitment to Accelerate Transition to a Hydrogen Society by Enhancing Hydrogen Technology Capabilities
An additional pillar for promoting the ‘Hyundai Way’ is the strategy of enhancing hydrogen energy technology and business capabilities as an ‘Energy Mobilizer.’ Through this, Hyundai aims to secure global leadership as a ready energy provider for the future energy paradigm transition to hydrogen.
Focusing on sustainable energy technologies and solutions, Hyundai is also leading the global energy transition through its hydrogen value chain business brand ‘HTWO,’ targeting a carbon-neutral (0) footprint from automotive production, operation, and disposal by 2045.
Earlier this year, at CES, Hyundai unveiled the HTWO brand and introduced the HTWO Grid solution to accelerate the transition to a hydrogen society, actively participating in hydrogen-related pilot projects.
Hyundai is currently involved in a joint project with the Indonesian government to demonstrate hydrogen production models using organic waste, and as an official green commercial truck supplier for the ‘NorCAL ZERO’ initiative in California, they supplied 30 Xcient hydrogen fuel cell trucks.
Additionally, in collaboration with Glovis America, Hyundai plans to introduce the HTWO logistics solution, an eco-friendly logistics system at the new HMGMA factory in Georgia by the end of this year, to establish a hydrogen mobility ecosystem centered around HMGMA. Moreover, Hyundai is set to expand its fuel cell system lineup into various sectors, including trams, ships, small aircraft, generators, and heavy equipment.
■ 120.5 trillion won investment over the next 10 years… Aiming for 10% operating profit margin
Hyundai announced a long-term financial strategy, stating they will invest 120.5 trillion won from 2024 to 2033 to implement the ‘Hyundai Way,’ create sustainable profits, and expand future mobility businesses, while targeting an operational profit margin of over 10% by 2030.
Specifically, Hyundai disclosed plans for 10 years of investments, including 54.5 trillion won for R&D, 51.6 trillion won for capital expenditures (CAPEX), and 14.4 trillion won for strategic investments, demonstrating a commitment to bold investments and execution in the face of uncertainty to prepare for the future and achieve the Hyundai Way.
In terms of detailed strategies under the Hyundai Way, 92.7 trillion won, accounting for 77% of the total investment, will be allocated to the execution of ‘Hyundai Dynamic Capabilities.’ Among this, R&D investment will be 37.4 trillion won and facility investment will reach 50.8 trillion won. Through this, Hyundai aims to develop next-generation hybrids and EREV models that will serve as a bridge during the electrification transition and secure battery competitiveness for sustained profitability.
For the ‘Mobility Game Changer’ strategy, 22.1 trillion won is allocated for advancing autonomous driving technology and progressing in SDV transition while supporting new business ventures such as AAM (Advanced Air Mobility) and robotics.
In the ‘Energy Mobilizer’ strategy, 5.7 trillion won will be invested to boost hydrogen energy technology and business capabilities, while also forming external partnerships for the commercialization of the hydrogen value chain.
Hyundai plans to flexibly respond to the market during the mid- to long-term periods through the Hyundai Way, overcoming electric vehicle growth slowdowns and gradually increasing its operational profit margins. By improving profitability across internal combustion, hybrid, and EV segments, they aim to achieve an operational profit margin of over 10% by 2030.
Lee Sang-jin, daedusj@autodiary.kr