ACCELERATING ELECTRIFICATION
Hyundai motor company has unveiled a strategic road map to accelerate its electrification ambition as it pursues sustainable progress for the company. Hyundai President and CEO Jaehoon Chang and other executives presented the company’s electrification plans to shareholders, investors and various stakeholders at the “2022 CEO Investor Day” virtual forum. The company also unveiled sales and financial performance targets to be achieved by 2030. The road map for Hyundai’s battery electric vehicle (BEV) is supported by: • strengthening BEV line-ups • optimising manufacturing capacity • securing hardware and software competitiveness Hyundai also presented its mid-to-long-term financial goals, earmarking KRW 95.5 trillion (~$A110 billion) of investment for future businesses by 2030 and targeting an operating profit margin of 10% or higher in EV businesses by enhancing competitiveness in hardware and software capabilities with an expanded line-up. “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,” Chang said. “Along with our seamless efforts to improve EV value, Hyundai Motors will continue to secure its business sustainability as a ‘mobility solutions provider’ through advanced hardware and software technologies.”
Strengthening BEV line-ups
Hyundai begins sales of IONIQ 6, followed by IONIQ 7 in 2024. The Genesis luxury brand’s BEV line-up consists of two passenger cars and four SUVs, including the electrified GV70, which launches this year. Starting in 2025, all newly launched models from Genesis will be electrified.
Optimising EV manufacturing capacity Hyundai Motors aims to establish a high-efficiency manufacturing process for BEV production to accelerate its transition into electrification. The Hyundai Motor Global Innovation Centre in Singapore (HMGICS), the cornerstone for innovation in the company’s mobility value chain, will build a human-centred 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 centred in Korea and the Czech Republic, Hyundai plans to gradually expand its BEV manufacturing bases, starting with an Indonesian plant that recently commenced operation. The Indonesian plant will start BEV production this year. As BEV production bases expand, the company will aim to increase the local procurement rate of batteries through strategic alliances with battery companies in major regions to secure sufficient battery supply. In 2025, the company expects to obtain more than 50% of its next-generation lithium batteries for BEVs through these alliances.
Hyundai Motors raised the annual BEV sales target to 1.87 million units by 2030, up from the previously announced 560,000 units by 2025. The company aims to take a 7% market share of the overall global BEV market.
In addition, Hyundai will also diversify battery sourcing to consolidate the competitiveness of future BEVs. The company has secured sufficient battery supply to meet its sales targets through to 2023. It plans to continue cooperation with various battery companies with the aim of securing 170 GWh of batteries for its models, including the Genesis luxury brand, by 2030.
Hyundai plans to introduce 17 BEV models – 11 Hyundai marque models along with six models from the Genesis luxury brand – by 2030 as it seeks to expand the BEV spectrum. The new Hyundai BEV models will include three sedans, six SUVs, one light commercial vehicle and one new model type. This year,
Hyundai is cooperating with various global partners to improve the energy density and cost efficiency of the next-generation batteries, such as the solid-state battery.
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