Hyundai Motor Company has unveiled its new mid- to long-term strategy, dubbed the ‘Hyundai Way,’ during the 2024 CEO Investor Day. The strategy is designed to enhance the company’s competitiveness in electric vehicles (EVs), hybrid technologies, and autonomous driving, while also expanding its role in the global energy transition. The company aims to reach 5.55 million annual global sales by 2030, including 2 million EVs. Hyundai will also be developing a new Extended Range Electric Vehicle (EREV) with more than 900 km range on a single charge.
Expanding Hybrid & EV Lineup
As part of the ‘Hyundai Way,’ Hyundai Motor will significantly expand its hybrid vehicle offerings, doubling the lineup from seven to 14 models. This expansion will include the Genesis luxury brand, which will offer hybrid options across its range. Hyundai will also introduce an enhanced next-generation hybrid system, the TMED-II, which promises improved performance and fuel efficiency. This system will begin integration into production vehicles by January 2025, with a goal of increasing hybrid vehicle sales to 1.33 million units by 2028, driven by strong demand in markets such as North America.
Hyundai’s EV strategy includes the development of a new type of electric vehicle, the EREV (Extended Range Electric Vehicle), which will offer a driving range of more than 900 km on a single charge. The EREV is designed to bridge the gap between internal combustion engines and full electrification, providing an EV-like driving experience with the convenience of refueling. Mass production of the EREV will begin in North America and China by the end of 2026, with a sales target of over 110,000 units across these markets.
By 2030, Hyundai plans to offer a full lineup of 21 EV models, ranging from affordable to luxury and high-performance vehicles, to meet diverse consumer needs. The company is also committed to advancing its battery technology, focusing on the development of affordable NCM batteries and enhancing safety through continuous improvements in battery management systems.
Autonomous Driving & Software Innovations
Hyundai Motor is also advancing its capabilities in autonomous driving, with plans to commercialise an autonomous vehicle foundry business. This venture will supply autonomous vehicles to global software firms, leveraging Hyundai’s hardware development expertise and manufacturing capabilities. The company is also developing a next-generation infotainment system and a high-performance vehicle computer (HPVC) architecture, which will be integrated into its Software-Defined Vehicles (SDVs).
Hyundai’s strategy includes the launch of an SDV Pace Car by 2026, which will showcase the company’s advancements in autonomous driving and AI functions. This vehicle will serve as a benchmark for Hyundai’s future mobility services and will be followed by the application of full-stack software technologies across other models.
Investing In Hydrogen & Clean Energy
In its pursuit of becoming a leader in the energy transition, Hyundai Motor is focusing on hydrogen technology through its HTWO business. The company plans to expand its fuel cell system lineup to cater to various applications, including trams, ships, and heavy equipment. Hyundai views hydrogen as a key element in its strategy to achieve carbon neutrality by 2045, with ongoing projects in clean hydrogen production and logistics.
Financial Commitments & Shareholder Returns
Hyundai Motor has outlined an ambitious investment plan of KRW 120.5 trillion through 2033 to support the ‘Hyundai Way’ strategy. This investment will be allocated across research and development, capital expenditure, and strategic investments, with a significant focus on electrification and advanced software technologies.
The company also announced a new shareholder return policy, targeting a total shareholder return (TSR) of over 35% from 2025 to 2027. This includes a share buyback scheme worth up to KRW 4 trillion, along with a minimum annual dividend of KRW 10,000 starting in 2024.
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