Hyundai Motor Company recently unveiled its new mid- to long-term strategy, dubbed the ‘Hyundai Way,’ during the 2024 CEO Investor Day. This strategy outlines the company’s approach to navigating market conditions, focusing on electrification, battery technology, and expanding its energy and mobility operations.
Under the Hyundai Way, the company has set ambitious targets, aiming to achieve 5.55 million global sales annually by 2030, with a significant push toward electric vehicles (EVs). Hyundai plans to sell 2 million EVs per year by 2030, supported by the introduction of 21 different EV models. This lineup will include both affordable and luxury options, with the company also planning to expand its hybrid offerings.
Hyundai Motor is also advancing its battery technology, intending to internalize battery production to enhance cost competitiveness and safety. The company is focusing on developing affordable NCM (nickel-cobalt-manganese) batteries while also exploring next-generation battery technologies, such as solid-state batteries. By 2030, Hyundai aims to improve battery energy density by over 20%, offering a broader range of battery solutions for its vehicles.
In response to fluctuating EV demand, Hyundai is introducing a new type of EV known as an Extended Range Electric Vehicle (EREV). This model will feature a range of over 900 km on a single charge, providing a bridge to full electrification. Production of the EREV will begin in North America and China by 2026, with sales starting in 2027.
The Hyundai Way also emphasizes the company’s commitment to autonomous driving technology. Hyundai plans to commercialize its autonomous vehicle foundry business, supplying vehicles to global autonomous driving software firms. The company aims to lead in autonomous driving capabilities, leveraging partnerships with technology companies and its experience in developing autonomous vehicles.
In addition to its focus on vehicles, Hyundai is enhancing its position as an energy leader by expanding its hydrogen technology capabilities. The company plans to strengthen its hydrogen value chain and make hydrogen a central part of its energy strategy, aiming for net-zero emissions by 2045.
Financially, Hyundai Motor has outlined a significant investment plan of KRW 120.5 trillion through 2033 to support the Hyundai Way strategy. This investment will be allocated to research and development, capital expenditures, and strategic initiatives, with the goal of maintaining competitiveness in the rapidly evolving automotive industry.
Hyundai Motor also announced plans to enhance shareholder returns, introducing a new Total Shareholder Return (TSR) policy with a target of over 35%. The company will implement a share buyback scheme worth up to KRW 4 trillion between 2025 and 2027, alongside a minimum annual dividend of KRW 10,000.
