As part of its initiative to accelerate its electrification ambition and pursue sustainable progress, Hyundai Motor Company today unveiled a strategic roadmap.
The plan aims to boost annual global battery electric vehicle (BEV) sales to 1.87 million units and secure about 7% global market share by 2030.
President and CEO Jaehoon Chang and other executives presented the plans to shareholders, investors, and other stakeholders at the ‘2022 CEO Investor Day’ virtual forum.
Alongside, the company also unveiled targets for sales and financial performance to be achieved by 2030.
The roadmap for the company’s BEV is supported by strengthening BEV lineups, optimising manufacturing capacity, and securing hardware and software competitiveness.
Additionally, it presented its mid-to-long-term financial goals. The company earmarked KRW 95.5 trillion ($79.19 billion) of investment for future businesses by 2030, including KRW 19.4 trillion ($16.09 billion) for electrification and KRW 12 trillion ($9.95 billion) for software capabilities.
By 2030, it also targets to achieve an operating profit margin of 10% or higher in EV businesses by enhancing competitiveness in hardware and software capabilities with an expanded lineup. It aims to secure an operating profit margin of 10% on a consolidated basis.
Strengthening BEV lineups
The carmaker has raised the annual BEV sales target to 1.87 million units by 2030 from previously announced 560,000 units by 2025. It plans to launch 17 BEV models, including 11 Hyundai marque models and six models from Genesis, by 2030.
The new Hyundai BEV models will include three sedan models, six SUVs, one light commercial vehicle, and one new type model. This year, Hyundai begins sales of IONIQ 6, followed by IONIQ 7 in 2024, a release from the company stated.
The BEVs from Genesis will consist of two passenger cars and four SUVs, including the Electrified GV70, launching this year. Starting in 2025, all newly launched models from Genesis will be electrified, the release added.
Manufacturing
The company aims to establish a high-efficiency manufacturing process for BEV production to accelerate its transition into electrification.
Beyond existing BEV production facilities centred in Korea and the Czech Republic, the carmaker plans to gradually expand its BEV manufacturing bases, starting with an Indonesian plant that recently began operation. The Indonesian plant will start BEV production this year, the release added.
As BEV production bases expand, the company is trying to increase the local procurement rate of batteries through strategic alliances with battery companies in major regions, including the US, to secure sufficient battery supply. Through these alliances, the company expects to obtain more than 50% of its next-generation lithium batteries for BEVs starting in 2025.
Regarding the next-generation batteries, such as solid-state batteries, the company is cooperating with various global partners to improve energy density and cost efficiency, the release added.
Hardware, Software Competitiveness
Hyundai is also planning to introduce an Integrated Modular Architecture (IMA), which evolved from the electric global modular platform (E-GMP).
The IMA will be utilised as Hyundai Motor’s passenger BEV platform and as its exclusive purpose-built vehicle (PBV) platform,helping to streamline production processes and reduce cost, the carmaker stated. It will also develop software architectures to provide a satisfying ownership experience for customers.
The company plans to apply an over-the-air (OTA) update to new models that will be launched at the end of 2022 and expand it to all Hyundai models by 2025. In addition, the number of integrated control units can be reduced by one-third by 2030.
In terms of autonomous driving technology, the Highway Driving Pilot (HDP), a Level-3 autonomous driving function, will be applied to Genesis G90 starting in the second half of this year.
The Motional, the autonomous driving joint venture between Hyundai Motor Group and Aptiv, plans to expand the service area of an IONIQ 5-based robotaxi following its commercial service commencement in 2023 and start self-driving delivery services this year through partnerships with Uber Eats.
By 2030, the company will invest a total of KRW 12 trillion ($9.95 billion) in boosting competitiveness in software capabilities, including KRW 4.3 trillion on technology development, such as connectivity and autonomous driving, KRW 4.8 trillion on strategic investment for startups and research institutions, and KRW 2.9 trillion on information and communications technology (ICT).
After 2030, the company targets the revenue from software-related businesses to take approximately 30% of total sales.
Financial Targets
By 2030, Hyundai aims to achieve a target of an operating profit margin of 10% or higher in EVs by increasing sales volume and innovating cost structure. Strengthened EV lineup, develop efficient next-generation batteries, and IMA will help the company meet its financial goals. On a consolidated basis, the company set a goal of an operating margin of 10%, the company said.