Hyundai Motor "Establishing 17 EV Models by 2030... Achieving 7% Global Market Share"

2022 CEO Investor Day Held
Hyundai Motor Company and Genesis to Sell 1.87 Million Global Electric Vehicles by 2030
Rail Division Operating Profit Margin at 10%

Jang Jae-hoon, CEO of Hyundai Motor Company, is presenting Hyundai's mid- to long-term electrification strategy at the '2022 CEO Investor Day' held on the 2nd through an online channel. Photo by Hyundai Motor Company

[Asia Economy Reporter Yoo Hyun-seok] Hyundai Motor Company plans to establish an electric vehicle (EV) lineup of more than 17 models by 2030, aiming to sell 1.87 million EVs globally and achieve a market share of 7%. Based on this, the company intends to secure an operating profit margin of over 10% in the EV sector by 2030 and achieve 100% electrification in key regions by 2040.

On the 2nd, Hyundai held the '2022 CEO Investor Day' to announce its mid- to long-term electrification acceleration strategy and financial goals. President Jang Jae-hoon and Executive Vice President Seo Kang-hyun, head of the Planning and Finance Division, delivered video presentations.

Hyundai will introduce two new dedicated EV platforms by 2025: the 'eM' platform exclusively for passenger EVs and the 'eS' platform for PBV (Purpose Built Vehicles). Additionally, it plans to invest 12 trillion KRW by 2030 to strengthen company-wide software capabilities such as connectivity and autonomous driving.

Based on this, Hyundai aims to solidify its position as a global EV leader and a smart mobility solutions company. The consolidated operating profit margin is targeted to expand to 10% by 2030. To achieve this, it will invest 95.5 trillion KRW in future businesses.

◆1.87 Million EV Sales by 2030= Hyundai has set mid- to long-term EV sales targets, including Genesis, at 840,000 units by 2026 and 1.87 million units by 2030. This plan aims to increase annual EV sales from 140,000 units in 2021 by six times within five years and more than thirteen times within ten years. The market share, which was just over 3% last year, is targeted to rise to 7% by 2030. If the plan proceeds as expected, the EV sales ratio of Hyundai and Genesis, which was about 4% in 2021, will increase to 17% by 2026 and 36% by 2030.

Hyundai plans to focus on the U.S. and European markets, the fiercest battlegrounds in the EV market. By 2030, it aims to sell 530,000 EVs in the U.S., achieving an 11% market share. In Europe, it plans to sell 480,000 EVs, securing a 6% local EV market share.

To expand market share, Hyundai will launch various types of EVs. Hyundai and Genesis plan to build an EV lineup of more than 17 models by 2030, with Hyundai offering 11 models and Genesis 6 models.

Hyundai will first release the Ioniq 6 this year and the Ioniq 7 in 2024. Through this, by 2030, Hyundai plans to establish an EV lineup consisting of ▲6 SUVs ▲3 passenger cars ▲1 small commercial vehicle ▲1 other new model. Genesis will launch all new models as electrified vehicles starting in 2025. By 2030, Genesis plans to offer an EV lineup of 6 or more models, including ▲4 SUVs ▲2 passenger cars.

◆Optimizing Global EV Production= Hyundai is pursuing production efficiency and optimization as a way to expand EV sales. It has also established a 'comprehensive battery strategy' to secure stable battery supply and develop next-generation battery technologies. To effectively respond to increasing EV demand and reduce manufacturing costs, Hyundai plans to convert existing internal combustion engine (ICE)-focused production facilities into production systems optimized for electrification.

The starting point is Singapore. The 'Hyundai Motor Group Singapore Global Innovation Center (HMGICS),' scheduled to be completed in the second half of this year, will serve as a manufacturing innovation platform supporting efficiency improvements across vehicle production systems, including EVs. The advanced logistics system and flexible production structure introduced here will later be expanded to all Hyundai global plants.

Furthermore, Hyundai will actively expand production centered on regions with concentrated EV demand. Among the nine global production bases, the EV production bases centered in Korea and the Czech Republic will be further expanded. The recently launched Indonesian plant will begin EV production within this year. Hyundai is also considering establishing new EV-dedicated plants in addition to existing factories.

◆Securing 170 Gigawatt-hours (GWh) of Batteries by 2030= Hyundai plans to strengthen friendly relationships with global battery companies to secure 170 GWh of batteries necessary for selling 1.87 million EVs by 2030.

Hyundai Motor Group will establish a battery cell joint venture with LG Energy Solution in Indonesia to produce 10 GWh of lithium-ion batteries annually from 2024, sufficient for 150,000 EVs per year. It is also pursuing additional strategic partnerships with battery companies in key markets such as the U.S. Through these strategic alliances, Hyundai plans to procure 50% of next-generation lithium-ion batteries, scheduled for application after 2025.

At the same time, Hyundai is maximizing performance improvements of existing lithium-ion batteries and focusing on developing next-generation battery technologies such as solid-state batteries to achieve essential performance enhancements and cost reductions for future EV competitiveness.

◆Development of New EV Platforms= Hyundai introduced the dedicated EV platform 'E-GMP' in 2020. However, not satisfied with this, the company plans to complete the development of an 'Integrated Modular Architecture (IMA)' system by 2025, which standardizes and modularizes key EV components such as batteries and motors, improving upon the existing platform. By standardizing batteries and motors, which currently have separate specifications for each EV model, Hyundai aims to flexibly apply them by vehicle class, thereby efficiently expanding the EV lineup and enhancing product competitiveness.

With this new EV architecture, Hyundai will introduce the passenger car-exclusive EV platform 'eM' and the PBV-exclusive EV platform 'eS' in 2025. The eM platform features expanded commonality compared to E-GMP through the application of standard modules. Driving range will improve by more than 50% compared to the Ioniq 5, and various new technologies such as Level 3 or higher autonomous driving and standard wireless updates for all models will be equipped. The eS platform will be developed with a skateboard-type flexible structure, serving B2B demands such as delivery, shipping, and ride-hailing.

◆Achieving 10% Consolidated Operating Profit Margin by 2030= Hyundai plans to achieve an operating profit margin of over 10% in the EV sector by 2030. It aims to increase sales per model from about 20,000 units in 2021 to 110,000 units in 2030. Additionally, it will improve operating profit step-by-step by optimizing production and reducing battery costs.

The consolidated operating profit margin, which was 5.7% in 2021, is targeted to rise to 8% by 2025 and 10% by 2030. First, Hyundai will continuously improve the profitability of existing ICE vehicles by 2025 while laying the foundation to increase EV profitability. Then, by 2030, based on solid ICE vehicle profitability and stabilized EV profitability, Hyundai plans to actively increase sales of new software-related businesses and expand operating profit.

To support efforts to maximize profitability and firmly establish a sustainable growth foundation, Hyundai will actively invest 95.5 trillion KRW in future businesses from this year through 2030. Specifically, it will allocate ▲39.1 trillion KRW for research and development (R&D) ▲43.6 trillion KRW for capital expenditures (CAPEX) ▲12.8 trillion KRW for strategic investments.

Of this, about 20%, or 19.4 trillion KRW, will be invested in electrification. Hyundai plans to focus investments on various electrification-related areas, including strengthening EV product competitiveness, developing advanced electrification component technologies, expanding dedicated plants and production lines, developing next-generation batteries, and building charging infrastructure.

President Jang Jae-hoon said, “Hyundai will strengthen not only the hardware performance of mobility devices but also software capabilities as a 'mobility solution provider.' We will continuously provide optimized services and generate profits to promote sustainable development.”

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