Image Credits : Vrogue
Hyundai Motor Company has announced an investment plan of 120.5 trillion won (approximately $90 billion) over the next decade as part of its aggressive strategy to lead the global electrification movement. The South Korean automaker, facing a rapidly evolving automotive market, unveiled its “Hyundai Way” strategy during the CEO Investor Day on August 28, 2024.
The investment, representing a 10% increase over last year’s 10-year plan, will be channelled into several key areas: research and development (R&D), capital expenditure, and strategic investments. Hyundai aims to expand its lineup of electric vehicles (EVs) and hybrid models, while also introducing a new class of vehicles known as Extended Range Electric Vehicles (EREVs).
Hyundai has set ambitious goals, including the global sale of 5.55 million vehicles annually, with 2 million of these being EVs. To support this, the company will double its hybrid offerings from seven to 14 models, extending its hybrid system across a wider range of vehicles, including luxury models under its Genesis brand. The next-generation hybrid system, set to debut in January 2025, promises enhanced performance and fuel efficiency.
The introduction of EREVs is a significant part of Hyundai’s strategy to address the current slowdown in EV adoption. These vehicles, while primarily electric, are equipped with an internal combustion engine used solely for battery charging, offering a driving range of over 900 kilometres on a full charge. Mass production of EREVs will commence in North America and China in 2026, with sales slated for 2027.
Hyundai is also making significant strides in battery technology. The company plans to develop a more affordable nickel-cobalt-manganese (NCM) battery by 2030 and improve battery safety with advanced diagnostic and cooling technologies.
Hyundai’s comprehensive strategy extends beyond vehicles. The company is investing in autonomous driving technologies and plans to launch a business to supply customizable autonomous vehicle platforms. Additionally, the “Energy Mobilizer” strategy aims to enhance hydrogen technology, contributing to Hyundai’s goal of achieving net-zero carbon emissions by 2045.