Hyundai Motor Company (Hyundai) hosted its 2024 CEO Investor Day, unveiling its new mid- to long-term strategy, the ‘Hyundai Way’.
At the event, the company disclosed its commitment to enhancing its electric vehicle (EV) and hybrid competitiveness, advancing its battery and autonomous vehicle technologies, and expanding its vision as an energy mobilizer.
“Under the Hyundai Way, we will respond to the market with agility thanks to Hyundai’s unique flexible response system,” said Jaehoon Chang, president and chief executive officer of Hyundai. “This will secure sustainable leadership in an uncertain market environment and strategically position the company to create a future centered on mobility and energy. Hyundai will strengthen its position as a game changer by expanding beyond vehicle manufacturing to various forms of mobility. By enhancing the role of energy business operators and realizing a hydrogen society, we intend to transform into a company that can maintain global top-tier leadership in the era of energy transition.”
In 2024, Hyundai secured its profitability and EV competitiveness in the market. These achievements were recognized by global rating agencies as the company earned an ‘A-grade’ credit rating from major global credit rating agencies. Moreover, with a global sales annual volume of 4.21 million units in 2023, Hyundai became one of the top three automakers globally.
Hyundai is expanding its hybrid lineup from 7 to 14 models (including Genesis). Its new extended range electric vehicle (EREV) will serve as key bridge to full electrification. Hyundai expects its full EV lineup to consist of 21 models by 2030. The company will develop new affordable battery and safety technology.
Hyundai’s new strategy will expand the application of its hybrid system beyond compact and midsize cars to small, large and luxury vehicles, effectively doubling its current range from seven to 14 models. This expansion will encompass not only Hyundai vehicles but also its luxury brand, Genesis, which will offer a hybrid option for all models, excluding those that are exclusively electric.
The company will also introduce the next-generation TMED-II system. According to Hyundai, this enhanced version of its existing hybrid system has achieved the world’s highest level of competitiveness by significantly improving performance and fuel efficiency compared to the existing system. The system is slated for integration into production vehicles starting in January 2025. Future hybrid vehicles will be equipped with premium technologies such as smart regenerative braking and V2L, enhancing product value and cementing Hyundai Motor’s standing in the market with superior product quality.
Leveraging its enhanced hybrid capabilities, Hyundai Motor aims to significantly boost the sales of its hybrid vehicles. By 2028, its goal is to sell 1.33 million units, an increase of over 40% of its global sales plan from the previous year. The company anticipates a surge in hybrid demand, particularly in North America, where it plans to increase its hybrid vehicle volume to 690,000 units by 2030. It will tailor its hybrid sales expansion to meet the demand in each region, including Korea and Europe. The expanded regional hybrid deployment plan will secure market portfolio flexibility.
Hyundai has secured a production system and parts supply network, making full use of its major global factories and introducing hybrid models, resulting in cost reduction and profitability enhancement. Furthermore, it plans to manufacture hybrid vehicles at Hyundai Motor Group Metaplant America (HMGMA) in Georgia, alongside its EV models, including IONIQ 5 and IONIQ 9, the company’s highly anticipated, three-row fully electric SUV. Hyundai believes this strategy will allow it to respond swiftly to the North American market, which currently faces a shortage of hybrid supply, and to enhance the operational efficiency of the factory.
Full EV Lineup Expansion, New EREV
In response to the recent slowdown in EV demand, Hyundai Motor is developing a new EREV under its Hyundai Dynamic Capabilities strategy. The new EREV will combine the advantages of internal combustion engines (ICE) and EVs. Hyundai Motor has developed a unique new powertrain and power electronics (PT/PE) system to enable four-wheel drive with the application of two motors. The operation is powered solely by electricity, similar to EVs, with the engine being used only for battery charging.
According to Hyundai, the new EREV maximizes the use of the existing engine to improve customer appeal and secure cost competitiveness with similar EVs by reducing high-cost battery capacity. It provides EREV customers with a responsive EV-like driving experience, allowing consumers to naturally transition to EVs during future demand recovery periods. Hyundai said the EREV offers price competitiveness over other options thanks to its battery capacity optimization, which allows both refueling and stress-free charging while offering a driving range of over 559 miles (900 km) when fully charged.
Hyundai plans to begin mass production of the new EREV in North America and China by the end of 2026, with sales commencing in earnest in 2027. In the North American market, the company will initially launch D-class SUV models of Hyundai and Genesis brands to meet the remaining demand for internal combustion engines, with a target of 80,000-plus units.
In China, where price competitiveness is crucial in the eco-friendly car market, Hyundai plans to respond using an economical C-segment platform, with a target of 30,000-plus units. The company will also review further expansion plans in line with future market conditions.
The company aims to address the EV deceleration by expanding its hybrid and new EREV offerings and gradually increasing EV models by 2030 when a recovery in EV demand is expected. Hyundai aims to build a full lineup of EVs, from affordable EVs to luxury and high-performance models, and launch 21 models by 2030 to provide consumers with various options.
