Hyundai Motor Company is planning to spend KRW 19.4 trillion ($16.1bn) and targeting annual sales of 1.87 million BEVs by 2030 in a ramp-up of its electrification strategy.
Hyundai Motor raised the annual BEV sales target to 1.87 million units by 2030 from previously announced 560,000 units by 2025. The company aims to take 7 percent market share in the overall global BEV market.
The company is planning to introduce 17 new BEV models by 2030; 11 for Hyundai models and six for the Genesis luxury brand. It also said it will boost BEV production capability centred on high-demand regions and that it is considering a new dedicated BEV production facility.
The new Hyundai BEV models will include three sedan models, six SUVs, one light commercial vehicle as well as one new type model. This year, Hyundai begin sales of IONIQ 6, followed by IONIQ 7 in 2024.
For the Genesis luxury brand, the BEV line-up consists 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.
It is also planning big investments in battery technology and planning to introduce an Integrated Modular Architecture (IMA) in 2025.
Some KRW 12 trillion is earmarked to boost software competitiveness in areas such as connectivity and autonomous driving.
The company targets 10% or higher operating profit margin in BEVs.
“Hyundai is successfully accelerating its transition to electrification and becoming a global leader in EVs despite a challenging business environment caused by the global chip shortage and ongoing pandemic,” said President Chang. “Along with our seamless efforts to improve EV value, Hyundai Motor will continue to secure its business sustainability as a ‘Mobility Solutions Provider’ through advanced technologies of not only hardware but also software.”
Hyundai Motor aims to establish a high efficiency manufacturing process for BEV production to accelerate its transition into electrification. Hyundai Motor Global Innovation Center in Singapore (HMGICS), the cornerstone for innovation in the company’s mobility value chain, will build a human-centered manufacturing innovation platform. The platform is expected to bring dramatic innovation in production efficiency through a flexible production system, advanced level automation and digital twin technology. The innovation will be expanded to global plants in the future.
Beyond existing BEV production facilities centered in Korea and the Czech Republic, Hyundai plans to gradually expand its BEV manufacturing bases, starting with an Indonesian plant that recently started operation. The Indonesian plant will start BEV production this year to help expand production volume.
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 U.S., to secure sufficient battery supply. Through these alliances, the company expects to obtain more than 50 percent of its next-generation lithium batteries for BEVs starting in 2025.