In a sweeping announcement at the 2024 CEO Investor Day in Seoul, Hyundai Motor Company laid out an ambitious new roadmap titled the “Hyundai Way.” This comprehensive strategy not only sets the course for the company’s future but also signals Hyundai’s commitment to electrification, advanced hybrid technology, autonomous vehicles, and a pioneering role in sustainable energy solutions. The strategy emphasizes flexibility in response to market changes and aims to elevate Hyundai as a leader in the automotive industry’s ongoing transformation.
Hyundai’s Electric Ambitions: A Leap Towards 2030
At the heart of the Hyundai Way is a bold push toward electrification. Hyundai aims to achieve a global sales target of 5.55 million vehicles by 2030, with a staggering 2 million of these expected to be electric vehicles (EVs). This represents a 30% increase in overall sales from 2023, reflecting Hyundai’s confidence in the growing demand for EVs.
Hyundai plans to introduce a full lineup of 21 EV models by 2030, covering the entire spectrum from affordable options to luxury and high-performance vehicles. The company’s commitment to electric mobility is further underscored by the development of a new type of Extended Range Electric Vehicle (EREV) designed to bridge the gap between traditional internal combustion engines and fully electric powertrains. With a range exceeding 900 kilometers on a single charge, the EREV is poised to be a game-changer, particularly in markets like North America and China.
Expanding Hybrid Capabilities
While Hyundai accelerates its electric vehicle plans, it is also doubling down on hybrid technology. The company announced plans to expand its hybrid lineup from the current seven models to 14 by 2030, including offerings from its luxury brand, Genesis. This expansion will be powered by Hyundai’s next-generation TMED-II hybrid system, which promises enhanced performance and fuel efficiency. By 2028, Hyundai aims to sell 1.33 million hybrid vehicles, a 40% increase over its previous sales plans.
Battery Technology: Hyundai’s Competitive Edge
Hyundai’s strategy also places significant emphasis on advancing battery technology. The company is committed to developing more affordable and efficient nickel-cobalt-manganese (NCM) batteries while also pushing the envelope with next-generation batteries, including solid-state variants. Hyundai’s ongoing efforts to internalize battery production are aimed at not only improving performance but also ensuring the safety and reliability of its EVs.
The company has already made strides in battery safety technology, introducing a battery management system (BMS) that monitors real-time battery conditions and preemptively alerts users to potential issues. This focus on safety, combined with plans to integrate battery systems more seamlessly into vehicle structures, positions Hyundai at the forefront of battery innovation.
Autonomous Driving and New Mobility Services
As part of its broader vision, Hyundai is making a significant foray into autonomous vehicles and software-defined mobility solutions. The company announced the launch of a new foundry business dedicated to developing and manufacturing autonomous vehicles for global partners. This venture builds on Hyundai’s existing expertise in autonomous technology, developed in collaboration with Motional, and aims to supply autonomous platforms to leading software companies worldwide.
Hyundai also revealed plans for a Software-Defined Vehicle (SDV) strategy, which includes the development of an SDV Pace Car equipped with advanced high-performance vehicle computing architecture. This move is designed to position Hyundai as a leader in the next generation of mobility services, integrating AI and digital twin technologies to optimize real-time vehicle operations and traffic management.
Energy Mobilizer: Leading the Hydrogen Revolution
Hyundai’s vision for the future goes beyond automobiles. The company is positioning itself as a leader in the global energy transition, with a particular focus on hydrogen technology through its HTWO brand. Hyundai aims to expand its fuel cell system lineup to support a wide range of applications, including trams, ships, and heavy equipment. The company’s innovative hydrogen production methods, such as Waste-to-Hydrogen (W2H) and Plastic-to-Hydrogen (P2H), are set to play a crucial role in this strategy, offering sustainable energy solutions while addressing waste management challenges.
Hyundai’s commitment to hydrogen is part of a broader goal to achieve net-zero carbon emissions by 2045. This includes significant investments in renewable energy and the expansion of hydrogen ecosystems, particularly in sectors like logistics and industrial transportation.
Massive Investment and Shareholder Value
To support the Hyundai Way, the company announced a massive investment of KRW 120.5 trillion (approximately $101 billion) over the next decade. This investment will be channeled into research and development, capital expenditure, and strategic initiatives aimed at reinforcing Hyundai’s position in the electric, autonomous, and hydrogen markets.
Hyundai also unveiled a new shareholder return policy, with a focus on delivering a total shareholder return (TSR) of over 35% by 2027. This will include a substantial share buyback program worth up to KRW 4 trillion, as well as a commitment to maintaining a minimum annual dividend of KRW 10,000 per share.
Conclusion: Hyundai’s Path Forward
The Hyundai Way represents a bold and comprehensive strategy that positions Hyundai Motor Company at the forefront of the automotive industry’s transformation. By embracing electrification, advancing hybrid and battery technologies, and pioneering new mobility and energy solutions, Hyundai is not just responding to market trends but actively shaping the future of mobility and energy. With its ambitious goals and significant investment, Hyundai is set to become a global leader in the next era of transportation and sustainable energy.
