Hyundai plans to sell 560,000 electric and 110,000 hydrogen cars annually by 2025, with South Korea, US, China and Europe expected to become mass markets for electric and battery-powered vehicles by 2030

Hyundai plans to sell 560,000 electric and 110,000 hydrogen cars annually by 2025, with South Korea, US, China and Europe expected to become mass markets for electric and battery-powered vehicles by 2030

Hyundai Motor announced plans to invest KRW61 trillion (US$51bn) over the next six years to strengthen its car making operations and also to develop its smart mobility solutions business.

Under its new Strategy 2025 plan, the South Korean automaker sees itself transforming into two main business pillars: its traditional automobile production and distribution business and a smart mobility solutions business.

The latter includes smart mobility devices such as Personal Air Vehicles (PAVs), robotics and last mile mobility products, as well as providing smart mobility services such as personalised content on an integrated platform.

The company said its new strategy was designed to enhance the competitiveness of its existing car manufacturing business and at the same time generate new business opportunities by investing in future mobility technology.

As part of its vehicle manufacturing strategy, the company plans to sell 560,000 electric and 110,000 hydrogen cars annually by 2025, with South Korea, US, China and Europe expected to become mass markets for electric and battery-powered vehicles by 2030. India and Brazil are also forecast to generate significant demand for these vehicles by 2035.

Around KRW41 trillion will be invested in its existing automobile business, to enhance the profitability of its internal combustion engine (ICE) vehicle operations, secure leadership in vehicle electrification and lay the groundwork for platform based business.

The remaining KRW20 trillion will go into developing new technology to support its development as a smart mobility solutions provider.

Its smart mobility device business will look to supply products optimised for such services, with personalised content and services designed to help attract a broader customer base.

Hyundai's plans for its smart mobility device business include a wide range of product groups beyond automobiles, such as Personal Air Vehicle (PAV), robotics and last-mile mobility. The company said it plans to strengthen its manufacturing capabilities to build products that can offer customers a seamless mobility experience.

For example, it plans to establish the urban air mobility (UAM) business by combining personal air vehicle (PAV) with other mobility services.

Hyundai Motor president Lee Won-hee, at the company's CEO Investor Day roadshow, told shareholders, analysts and credit rating firms "we are reorganising our business portfolio to meet rapidly changing customer demands, with a focus on smart mobility products and services over the next six years".

The company also said it would buy back shares worth KRW300bn by the end of February to increase shareholders value.

Auto market intelligence
from just-auto

• Auto component fitment forecasts
• OEM & tier 1 profiles & factory finder
• Analysis of 30+ auto technologies & more