Hyundai Drops 'Air Mobility' from Mid- to Long-Term Strategy... Refocuses on Execution and Profitability

Hyundai Motor Company has excluded content related to Advanced Air Mobility (AAM) from its mid- to long-term strategy through 2030. Instead, the company has included plans to expand its global production capacity and optimize regional manufacturing, effectively reorganizing its global production network. This shift is interpreted as a strategic move to reduce the proportion of future businesses that are unlikely to yield short-term results, and to focus more on actionable tasks centered around manufacturing and products.

On November 18, the third-quarter report for 2025, disclosed by Hyundai Motor Company, did not contain any references to the AAM strategy that had been included up until the previous quarter. In the "Company’s Mid- to Long-Term Strategy" section of the report, the previous plan stating "We are pursuing the development of aircraft with the goal of commercialization after 2028 and considering early market entry outside Korea" was completely removed.

Industry analysts believe that Hyundai Motor Company has reorganized its internal structure and strategy in response to the global AAM market’s commercialization being delayed more than expected. Shin Jaewon, who had led Hyundai’s AAM division, retired in August, and the development and certification schedule for Supernal, Hyundai’s independent AAM entity in the United States, is also reportedly behind initial expectations.

Hyundai Motor Group's Supernal unveiled the next-generation AAM aircraft SA-2 at CES 2024. Provided by Hyundai Motor Group

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The delay in U.S. aircraft certification is not an issue unique to Supernal. The Federal Aviation Administration (FAA) in the United States has classified electric vertical takeoff and landing (eVTOL) aircraft as a "new type of aircraft," requiring the establishment of safety standards and certification procedures from scratch. Given the complex technological characteristics and the resulting intricate verification items, regulatory reviews are being conducted with extreme rigor. Supernal, in particular, is regarded as one of the most conservative companies in the industry, with a strong emphasis on safety.

The situation in Korea is not much different. In August, the government pushed back its target date for Urban Air Mobility (UAM) commercialization from 2025 to 2028 in its "K-UAM Roadmap." Even in the second phase of demonstration in downtown Seoul, delays in eVTOL aircraft certification have led to the use of alternative models such as helicopters, highlighting numerous practical constraints. Domestic UAM safety standards also need to be established from the ground up.

AAM is a next-generation aviation mobility industry that integrates advanced ICT such as autonomous flight algorithms, collision avoidance technology, high-density batteries, and electric propulsion systems. Its safety standards are entirely different from those for conventional aircraft and helicopters, and there is no international consensus for establishing global certification, making it difficult to predict when commercialization will occur.

As the likelihood of commercialization delays has increased, the analysis that Hyundai Motor Company has adjusted the strategic priority of AAM is gaining traction. In addition, factors such as the electric vehicle chasm (temporary demand slowdown), tariff burdens, and regional demand slowdowns have made it difficult for the company to maintain AAM, which requires large-scale investment, as a core strategy for the immediate future.

This mid- to long-term strategy statement also omitted references to long-term investment service businesses such as smart cities and robotaxis, which appears to be in the same context as the reprioritization of AAM. A Hyundai Motor Company representative stated, "The AAM business has completed the establishment of its technology R&D foundation and is now transitioning to the commercialization stage," adding, "We are currently reassessing our overall mid- to long-term strategy ahead of a shift in business direction."

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The overall framework of the strategy has also shifted from a future-oriented vision to an execution-focused approach. Whereas the previous mid- to long-term strategy emphasized future-oriented visions and philosophies such as ▲Mobility Game Changer ▲Energy Mobilizer ▲Flexible Response Capabilities, the new strategy has been reorganized around four specific execution strategies: manufacturing, products, technology, and partnerships. This is interpreted as an effort to enhance the effectiveness of the strategy based on short-term profitability and feasibility.

Under the new strategy, Hyundai Motor Company plans to expand its global production capacity by 1.2 million units, focusing on the United States, India, and Ulsan, and to reorganize its global production network by optimizing production allocation by region. The plan includes increasing production capacity at Hyundai Motor Group Meta Plant America (HMGMA) in Georgia by 500,000 units, India by 250,000 units, the new electric vehicle plant in Ulsan by 200,000 units, and semi-knockdown (CKD) plants in emerging markets such as the Middle East by 250,000 units by 2030. The company also plans to expand its lineup of hybrid electric vehicle (HEV) models to more than 18 types by 2030 and to strengthen the high-performance and luxury product lineup of the Genesis brand.

In its mid- to long-term strategy, Hyundai Motor Company also outlined plans to advance software-defined vehicle (SDV) technology. On the technology front, the company specifically mentioned the introduction of next-generation batteries in 2027 and detailed the achievements of its SDV platform development to date. In terms of partnerships, Hyundai Motor Company presented a strategy to strengthen collaboration with global companies such as Google, General Motors, Amazon, and Waymo, aiming to accelerate development and enhance market responsiveness.

An industry insider commented, "It appears that Hyundai Motor Company has reprioritized areas that can enhance short-term profitability and market responsiveness," adding, "In an environment of increased volatility, it is a realistic decision to avoid allocating resources to uncertain fields."

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