⋯ Hyundai to fully electrify its lineup in major global markets by 2040
⋯ Hyundai to apply Over-the-Air (OTA) function starting from 2021
⋯ Hyundai to offer new models equipped with Lv 3 technologies in 2022
SEOUL, December 10, 2020 — 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 commercialization.
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
At the beginning of the COVID-19 pandemic, Hyundai Motor predicted the crisis would rapidly digitize the automotive industry and increase consumer demand for sustainable solutions, and speeding up the transition from fossil fuels to electrification with increased investments to hydrogen ecosystem worldwide.
For the Smart Mobility Device and Smart Mobility Service pillars of Strategy 2025, the company plans to bolster its value chain and products while accelerating its digital transformation with the aim of providing optimized vehicles and services based on data. Hyundai also plans to launch a Smart Mobility Service business based on integrated mobility platforms. It will expand the scope of the provision of mobility services based on local communities and diversify its value-added business model utilizing vehicle data.
For its new H2 Solution pillar, the company will accelerate its hydrogen ecosystem initiative by upgrading fuel cell system technology and expanding fuel cell business beyond the development of fuel cell vehicles. The company plans to expand application of its fuel cell system in all transportation areas such as ships, trains, forklifts and UAMs.
Electric Vehicle (EV)
Starting with the launch of IONIQ 5 in 2021, Hyundai plans to sell 560,000 EVs per year by 2025. The company expects to introduce more than 12 BEV models, including BEVs built upon E-GMP, Hyundai Motor Group’s platform for dedicated EVs.
In mid- to long-term, Hyundai aims to secure leadership in the EV market and achieve 8-10 percent share of global EV market by 2040. Starting from 2030, the company will gradually expand BEV offerings in key markets such as the U.S., Europe and China, eventually aiming to fully electrify its product lineup in major global markets by 2040. It will also support democratization of EVs in emerging markets such as India, Russia and Brazil with more diverse EV models.
To achieve this goal, Hyundai will secure manufacturing competitiveness through increased parts standardization and reduced cost. To meet diverse needs of regional customers, the company plans to purse regionally-optimized EV product operation strategies.
In addition to manufacturing world leading EV models, Hyundai will also make efforts in charging infrastructure as well as battery businesses. The company plans to build 20 high-speed charging stations in Korea by 2021. Overseas, it will continue to carry out high-speed charging network projects with various partners, such as high-speed charging network projects in collaboration with IONITY in Europe.
For Genesis luxury brand, it will introduce a dedicated BEV model and a derived EV model in 2021. Following the Korea and U.S. markets, Genesis plans to expand its presence in China and Europe to build awareness and demand for the eco-friendly luxury brand.
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.
Fuel Cell System
Hyundai today also introduced ‘HTWO’, a new brand to represent the company’s world-leading hydrogen fuel cell system. Building upon Hyundai’s 20-plus years of experience in hydrogen fuel cell technology, the brand will present hydrogen as a positive energy for humanity. HTWO stands for ‘H2’, the hydrogen molecule, whilst also representing ‘Hydrogen’ and ‘Humanity’, the two main pillars of Hyundai’s fuel cell business. The launch of the new fuel cell system brand will help facilitate Hyundai’s global fuel cell business and grow the hydrogen ecosystem.
With HTWO, Hyundai Motor is stepping up efforts for the development of a next-generation hydrogen fuel cell system that can be applied to various forms of mobility such as UAM, automobiles, vessels and trains. Not only will the next-generation fuel cell system be available for many different mobility products and services, it will deliver enhanced performance and durability at an affordable price in a lighter architecture with enhanced energy density. With its next generation fuel cell system, the company aims to offer a highly efficient and diversified lineup of hydrogen-powered vehicles.
Through strategic partnerships with hydrogen, energy and logistics companies around the world, Hyundai Motor has expanded its fuel cell system business, accelerating development of a hydrogen society and laying the foundation for the company’s HTWO brand, with initial focus on major hub regions – Korea, the United States, Europe and China.
Since marketing the world’s first mass-produced fuel cell electric vehicle ix35 in 2013, Hyundai has been expanding its vehicle offerings powered by its fuel cell system such as NEXO SUV, XCIENT Fuel Cell heavy-duty truck and a fuel cell electric bus, as zero-emission mobility solutions. As a member of the Hydrogen Council, a global coalition of leading energy, transportation and industry companies with a shared vision and long-term ambition for hydrogen, Hyundai is committed to fostering a clean energy transition.
Under the Strategy 2025 roadmap, Hyundai disclosed updated mid- to long-term financial goals—running from 2020 through 2025—including an investment of KRW 60.1 trillion by 2025, 8 percent operating margin in the automotive sector and a 5 percent level of global automotive market share. This is an upgrade of the plan announced in December 2019 and will be carried out despite deteriorated market conditions due to the pandemic.
Out of the total, KRW 36.6 trillion will be allocated for R&D and capital expenditures to enhance competitiveness in existing businesses, while KRW 23.5 trillion will be dedicated to future technologies, including electrification, hydrogen fuel cells, UAM, autonomous driving, mobility service and platform, connectivity, AI and robotics.
In particular, investment into electrification and hydrogen businesses increased significantly to KRW 14.9 trillion from KRW 10.4 trillion announced last year due to the full-scale implementation of the hydrogen business and the expansion of the EV lineup.
Despite uncertainty in the global market caused by COVID-19, Hyundai Motor will continue to pursue its 8 percent target for operating profit margin in the automotive sector by 2025 through cost innovation to lay the foundation for sustainable future growth.
In the case of internal combustion engine vehicles, for which global demand is expected to recover after COVID-19, the company will focus on recovering profitability on the back of wider adaption of third-generation platforms in various models, optimization of production at regional headquarters, retail innovation and global expansion of the Genesis luxury brand.
For EVs, the company will cement its leadership with the introduction of E-GMP platform. It aims to bolster competitiveness at all stages of EV businesses throughout development, production and sales to achieve profitability comparable to that of ICE.
The company also strives to enhance shareholder value through market-friendly return policy. Despite concerns over uncertainties in the business environment in 2021, the company plans to consider annual dividends in deliberation of liquidity and earnings recovery.
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About Hyundai Motor Company
Established in 1967, Hyundai Motor Company offers a range of world-class vehicles and mobility services in more than 200 countries. Hyundai Motor sold more than 4.4 million vehicles globally in 2019, and currently employs some 120,000 personnel worldwide. The company is enhancing its product lineup with vehicles designed to help usher in a more sustainable future, while offering innovative solutions to real-world mobility challenges. Through the process Hyundai aims to facilitate ‘Progress for Humanity’ with smart mobility solutions that vitalize connections between people and provide quality time to its customers.
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