Hyundai to invest big to double hybrids, with plan for EREV by 2027

Industry

Hyundai to invest big to double hybrids, with plan for EREV by 2027

Published: 28 Aug. 2024, 18:04 Updated: 28 Aug. 2024, 19:15

SARAH CHEA
chea.sarah@joongang.co.kr

Hyundai Motor CEO Chang Jae-hoon speaks about the company's long-term business strategies during the Investor Day on Wednesday. [HYUNDAI MOTOR]

Hyundai Motor will invest 120.5 trillion won ($90 billion) over the next decade in its advanced electrification move, with hybrid models doubling and an expected launch of an extended-range EV by 2027.

The world's third-largest carmaker also raised its sales target by 30 percent to 5.55 million units in 2030 under its new long-term business strategies announced Wednesday. Of them, 36 percent will be electric models.

The total investment through 2033 is up 10 percent from last year. Of 121 trillion won, 77 percent, or some 92.7 trillion won, will be spent specifically on research and development and its electrification journey. Another 22 trillion won will be spent on autonomous driving and technologies related to software-defined vehicles. The remainder will be used in new sectors like flying taxis and robotics.

Hybrids to lead the charge
Hyundai will double its hybrid models to 14 by 2030 in response to the slumping demand for EVs.

Genesis will add hybrid versions of its lineup, excluding the EV-dedicated GV60.

The automaker raised its hybrid sales target by 40 percent to 1.33 million cars by 2028.

Hyundai said it will upgrade its EV facility in Georgia, which is currently under construction, so that it can simultaneously produce hybrid models. The plant is expected to start operation in October.

The automaker also plans to apply a new parallel full hybrid system, called the TMED-II system, in new models starting in January. The updated hybrid system significantly improves performance and fuel efficiency compared to the existing system, the automaker said.

The number of EV models will increase to 21 from the previously announced 17 by 2030.

“Hyundai will secure sustainable leadership in an uncertain market environment and strategically position the company to create a future centered on mobility and energy,” said Hyundai Motor CEO Chang Jae-hoon during the Investor Day event on Wednesday.

An EREV with a promising 600-mile range
In a measure to enhance profitability, Hyundai Motor presented its plan to introduce an Extended-Range Electrified Vehicle (EREV) in 2027.

An EREV uses an electric motor with a petrol engine that serves only to power the battery. The hybrid car is designed to provide a longer driving range compared to traditional electric cars — in Hyundai's case, more than 900 kilometers (560 miles) on a single charge.

Hyundai will start mass production of its EREVs at the end of 2026 in North America and China, with sales planned for 2027. Hyundai and Genesis will have mid-sized SUV EREVs.

It targets sales of 80,000 units annually.

"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 said.

Batteries and hydrogen
The Korean automaker is also developing cost-effective nickel cobalt manganese (NCM) batteries with a goal of commercialization in 2030. It aims to control nickel content to cut costs while increasing energy dentistry by 20 percent by 2030.

The company will also go forward with the development of solid-state batteries, dubbed dream batteries for their high energy density, at its forthcoming battery-dedicated research center at its Uiwang Research Institute in Gyeonggi.

Hyundai Motor is also dedicated to leading the global energy transition through its Hydrogen Technology Worldwide Organization business, with the goal of achieving carbon neutrality by 2045. This includes implementing renewable energy at work sites and expanding its hydrogen energy business.

“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 an energy transition," Chang said.

Hyundai Motor shares rose 4.7 percent to close at 259,000 won on Wednesday.

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