Hyundai Motor updates ‘Strategy 2025’ to accelerate transition into smart mobility solution provider.
Hyundai Motor Company today announced an updated roadmap for its future business Strategy 2025 at the ‘2020 CEO Investor Day’ forum held virtually in Seoul.
The comprehensive mid- to long-term strategy - presented by President and CEO Wonhee Lee and other executives to various stakeholders, including shareholders and investors—reinforces Hyundai’s plan to lead the future mobility industry as a Smart Mobility Solution Provider.
The updated Strategy 2025 roadmap is supported by three key pillars: Smart Mobility Device and Smart Mobility Service—both part of the original plan revealed in 2019—as well as H2 Solution, the addition of which reflects Hyundai’s commitment to fuel cell development and commercialisation.
Hyundai Motor’s updated strategy aims to achieve three major directives: enhancing competitiveness of its automotive business through electrification, establishing a foundation for becoming a leading mobility service and securing initiatives for a hydrogen ecosystem. With the aim of offering innovative and comprehensive mobility experiences to customers while contributing to the development of industry-wide ecosystem, the updated focuses on four major business areas - EV, urban air mobility (UAM), autonomous driving technologies and hydrogen fuel cell system.
“The year 2020 has been the first year to implement our Strategy 2025. Despite a challenging business environment caused by the COVID-19 global pandemic, we have successfully established the foundation for business growth for the next five years. Hyundai is now equipped with new strategies to respond to rapidly changing business environment,” said President Lee. “Along with our relentless efforts to improve profitability, Hyundai Motor will continue to make mid- to long-term investment to lay the foundation for sustainable growth in the upcoming years.”
At the forum, company executives, including Albert Biermann, President and the Head of Hyundai Motor Group R&D Division; Jaiwon Shin, Executive Vice President and Head of UAM Division; Saehoon Kim, Senior Vice President and Head of Fuel Cell Center; and Woongjun Jang, Vice President and Head of Autonomous Driving Center, gave presentations in each major business area.
Hyundai Motor also unveiled its mid- to long-term financial goals, which include an investment of KRW 60.1 trillion by 2025, securing an 8 percent operating margin in the automotive sector and achieving a 5 percent range of global automotive market share.
Updated Strategy 2025.
Urban Air Mobility (UAM).
As a Smart Mobility Solution Provider, Hyundai Motor will continue developing UAM, an innovative means of transportation that will help reduce urban congestion and improve people’s quality of life.
At CES 2020 in January, Hyundai presented its vision for future mobility by introducing the UAM concept model, ‘S-A1’, which is being developed based on four principles: safe, quiet, affordable and human-centered solution.
To take the lead in the UAM market, Hyundai Motor will build a family of air vehicles that covers both passenger and cargo transportation sectors.
The company plans to introduce air cargo Unmanned Aircraft System (UAS) with hybrid powertrain in 2026, and launch an all-electric UAM model optimized for intra-city operations in 2028. In the 2030s, the company plans to launch regional air mobility that connects adjacent cities.
From the initial stage of development, Hyundai will design its UAM models with a focus on scalable commercial production. In addition, the company plans to develop hydrogen powertrain for aviation using Hyundai’s own fuel cell technology that can offer unrivaled efficiency and flight range.
Hyundai will continue to collaborate with diverse parties in both private and public sectors to create a safe and efficient UAM ecosystem that is acceptable to the general public.
Autonomous driving technology.
Hyundai Motor is speeding up its efforts to develop autonomous driving technologies, especially in the area of sensor fusion and an integrated controller.
Hyundai has been applying sensor fusion technology that integrates, and processes information collected from various sensors such as cameras and radars. The company will add more cameras and start using lidars on mass production vehicles to further improve recognition accuracy.
Hyundai is developing a next-generation integrated controller by adding high-performance processors to its existing controller. Various advanced technologies, such as level 3 self-driving technology, self-parking functions and deep learning-based image recognition technology, can be applied with this next-generation controller. In particular, Over-the-Air (OTA) update function will be applied based on this unit from 2021. Feature on Demand (FoD) will also be introduced.
Starting from 2022, Hyundai plans to offer models equipped with level 3 autonomous driving technology. In addition, the company will accelerate commercialization of level 4 and 5 technologies through collaboration with partners around the globe. The establishment of Motional Inc., a joint venture between Hyundai and Aptiv lnc., is part of Hyundai’s efforts for global cooperation. Hyundai plans to continue its cooperation and strategic investment on global companies in the U.S., China, and Israel, while continuing its in-house efforts to advance self-driving technologies for various applications.