South Korean automaker Hyundai Motor will commit 20 trillion won ($A24.5 billion) into a five year push to become one of the world’s top electric vehicle makers, as well as focus on future smart mobility technology including connected services and autonomous driving.
In a statement made by the company on Tuesday, a new “Strategy 2025” plan will see the car maker put more than 11 trillion won ($A13.5 billion) into electric and autonomous cars.
Separately, another 41 trillion won ($A50 billion) would be put towards improving the car maker’s overall market “competitiveness in existing businesses” (take that as you will).
As part of the EV plan, Hyundai is targeting sales of 560,000 battery electric vehicles (BEVs) and 110,000 hydrogen fuel cell electric vehicles (FCEVs) per year, figures it hopes will place it as one of the world’s top three EV makers.
With two fully electric vehicle models – the Kona Electric and the Ioniq EV – already on the market in global markets including Australia, the company will first focus on getting new EV versions of most Hyundai models into the US, Europe, China and Korea by 2030 before turning to emerging markets such as Brazil and India by 2035.
There was no mention of new models for smaller markets such as Australia, however Hyundai’s high-end Genesis brand will introduce a battery electric model as soon as 2021. There are also electric models under the carmaker’s high-performance N brand planned, the company said.
In addition to a focus on new electric vehicle models, a new fully autonomous driving platform is planned that the carmaker wants to start production for by 2024. All Hyundai models will come with Level 2 and 3 autonomous driving features allowing hands and eyes off driving capabilities respectively by 2024.
Underpinning Hyundai’s focus on electric and autonomous driving is a desire to become a “Smart Mobility Service Provider”, a strategy which it says will entail “services tailored to the needs of customers in every aspect of their lives, including shopping, delivery, streaming, and multi-modal mobility services”.
In Australia, Korea and other parts of Asia, this will include teaming with local mobility service providers.
“The key to our future strategy is to focus on customers and to present the most desirable products and services. We want to offer smart mobility experiences that meet shifting needs of our customers by leveraging advanced technology,” said Hyundai Motor president Lee in a statement.
“Transforming into a Smart Mobility Solution Provider with comprehensive mobility solutions that combine devices and services will be the centerpiece of Hyundai’s future strategy.”
At the same time as funding innovation and electrification, a range of cost reduction programs including standardising platforms, architecture and parts will see Hyundai cut down on outgoings.
Combined with its ambitious sales target, Hyundai hopes its strategy will increase its operating margin to 8% by 2025, and its share of the global automotive market to 5% by the same year, up from 4% in 2018.
Bridie Schmidt is lead reporter for The Driven, sister site of Renew Economy. She specialises in writing about new technology and has been writing about electric vehicles for two years. She has a keen interest in the role that zero emissions transport has to play in sustainability and is co-organiser of the Northern Rivers Electric Vehicle Forum.