[Click eStock] "Hyundai Motor to Achieve Carbon Neutrality with Genesis Electrified Models"

However, Similar Plans with Other Luxury Brands... Limited Impact Expected on Stock Price
Hana Financial Investment "Maintains Hyundai Motor Target Price at 305,000 KRW"

[Asia Economy Reporter Gong Byung-sun] Hyundai Motor Company announced that starting in 2025, all Genesis brand vehicles will be launched exclusively as hydrogen or electric vehicles. However, since this plan is similar to those of competitors, securities analysts expect the impact on stock prices to be limited.

According to Hana Financial Investment on the 3rd, Hyundai Motor revealed its electrification plan for the Genesis brand at a vision presentation. From 2025, all new Genesis models will be released only as hydrogen or electric vehicles, and by 2030, they aim to complete an 8-model lineup and achieve annual sales of 400,000 units. Furthermore, starting after 2030, Hyundai plans to cease production of internal combustion engine vehicles and produce only electrified vehicles.

However, Genesis's goals are similar to those of competitors. German automaker Daimler announced that by 2025, its entire lineup will consist of electrified models, raising the electrification ratio to 50%. BMW plans to increase its current electrification ratio of 11% to 25% by 2025 and over 50% by 2030. The Mini brand also announced it will produce only electrified vehicles from the early 2030s.

Song Seon-jae, a researcher at Hana Financial Investment, said, “Genesis's electrification transition goals are similar to other luxury brands, and since detailed plans up to 2030 have not been announced, the positive effect on stock prices will be limited. However, the fact that it aligns with the industrial trend of the era and is among the faster transitions within Hyundai Motor’s overall electrification goals is a positive evaluation factor.”

Accordingly, Hana Financial Investment maintained its investment opinion of ‘Buy’ on Hyundai Motor, with a target price of 305,000 KRW. The previous closing price was 211,500 KRW.

(Provided by Hana Financial Investment)

Meanwhile, sales of the Genesis brand are expected to reach 200,000 units this year. The Genesis brand currently has five lineups, including three sedan models and two recreational vehicles (RVs). With the launch of the GV60 in the second half of the year, the lineup will increase to six, and the plan is to expand to eight lineups by 2030. Sales of the Genesis brand have steadily increased from 77,000 units in 2019 to 132,000 units last year, and 122,000 units up to July this year.

Researcher Song explained, “Although the shortage of automotive semiconductors is unfortunate, considering the current trend and the launch of the GV60 in the second half, annual sales this year are expected to reach 200,000 units. The 2025 target of 400,000 units depends on additional model lineup expansion, regional expansion, and securing market share through rapid transition to electrification.”

This content was produced with the assistance of AI translation services.