Hyundai Motor to invest big to expand EV sales six-fold

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Hyundai Motor to invest big to expand EV sales six-fold

Published: 20 Jun. 2023, 18:15 Updated: 20 Jun. 2023, 18:19

Hyundai Motor CEO Chang Jae-hoon speaks during an online Investor's Day event on Tuesday. [HYUNDAI MOTOR]

Hyundai Motor will invest 109.4 trillion won ($85 billion) over the next decade, with over one-third going into electrification to expand sales of electric vehicles (EVs) six-fold by 2030.

The Korean carmaker hopes to sell 2 million EVs in 2030 to capture around 7 percent of the global EV market. That is up by 130,000 compared to the goal it announced last year.

"Based on our innovative DNA, Hyundai Motor will proactively pursue leadership in EVs in global markets," said Hyundai Motor CEO Chang Jae-hoon during an Investor’s Day event held online on Tuesday. "The value of cultivating innovation by further developing technology inherited from the past is the distinct heritage that a company with a rich legacy can provide."

Of the total investment, 33 percent, or 35.8 trillion won will be specifically spent on electrification. Hyundai's EV sales will account for 34 percent of its total vehicle sales by 2030, with 48 percent of the sales from the United States, Europe and Korea.

Currently, only eight percent of Hyundai sales are EVs.

By region, Hyundai aims to sell 660,000 EVs in the U.S. market in 2030, which will account for 53 percent of its total sales. A full 71 percent of sales in European markets will come from EVs, while 37 percent from Korea.

For the electrification strategy, which the company calls Hyundai Motor Way, Hyundai will accelerate the development of its new Integrated Modular Architecture (IMA), an upgraded EV-dedicated platform, from the current Electric-Global Modular Platform (E-GMP).

Ioniq 6s, Hyundai Motor's first all-electric sedan [HYUNDAI MOTOR]

In the existing system, auto parts can only be shared among vehicles that share the same platform. But, with the IMA development system, over 80 common modules can be utilized across different segments, irrespective of vehicle type, allowing for versatile combinations. This system allows for greater flexibility and efficiency in the development process, paving the way for significant cost savings, Hyundai said.

The IMA will be applied to 13 new EV models from Hyundai, Kia and Genesis through 2030.

A total of 9.5 trillion won of investment is promised in enhancing the quality of EV batteries building related infrastructure.

It plans to introduce competitive lithium-iron-phosphate batteries with increased energy density and improved low-temperature efficiency for the first time around 2025.

It is also reviewing forming a battery joint venture in Europe. Hyundai currently is building a plant in Indonesia and two in the United States jointly with SK On and LG Energy Solution.

Hyundai Motor plans to build a Mobilize Energy toolbox for the production of resource-circulating hydrogen and manufacturing of green steel in the energy and resources sector and for the decarbonization of heat and power sources for business sites through hydrogen. In the utilization sector, it will build hydrogen mobility, fuel cells and accompanying infrastructure, and eco-friendly logistics systems using hydrogen.

Regarding its business in China, Chang said it will shorten its lineup from the current 13 models to eight models and instead focus on SUVs and Genesis luxury brand.

Hyundai has five plants in China. Two halted production and it plans to shut down one more this year.

BY SARAH CHEA [chea.sarah@joongang.co.kr]