Hyundai Motor Group: Aiming to sell 1 million EVs a year in 2025-26
Investing in advanced technologies, and entering the Purpose Built Vehicle (PBV) market
2021/08/05
- Summary
- Hyundai: Transforming from an automaker to a mobility solutions company
- Introduction of a variety of EVs based on E-GMP
- Entering the flying car market, working on robots and autonomous driving
- Hyundai's fuel cell vehicle strategy
- Kia: Focusing on EVs, Purpose Built Vehicles (PBVs) and mobility; changed company name and logo
- Hyundai Motor Group: Long-term sluggish performance in the 2020s
- LMC Automotive sales forecast: Hyundai Motor Group to sell 8.5 million units in 2024
Summary
The Hyundai Motor Group's Hyundai Motor Company (Hyundai) and Kia Corporation (Kia) announced that they would significantly revise their strategic direction in late 2020 and early 2021 in line with the paradigm shift in the automotive industry. The Hyundai Motor Group is transforming itself from an automaker to a "Smart Mobility Solution Provider".
Of particular importance in strengthening its position in the EV field is the development of its E-GMP (Electric-Global Modular Platform), a dedicated battery electric vehicle (BEV) platform, which is shared among the Hyundai, Genesis and Kia brands. The Ioniq 5, Hyundai's first model based on this platform, will be launched in the Korean, European and U.S. markets in 2021. Kia will launch the EV6 in the U.S. market in 2022. The Hyundai Motor Group plans to introduce 23 EV models by 2025 or 2026, selling slightly more than 1 million a year (Hyundai will sell 560,000 units of 12 models by 2025, while Kia will sell 500,000 units of 11 models by 2026).
Hyundai will invest KRW 60.1 trillion over the six years from 2020 to 2025, aiming for an operating profit margin of 8% in the automotive sector in 2025 (2020 actual operating profit margin was 3.2%).
In addition to strengthening its position the EV field, Hyundai will enter the Urban Air Mobility (UAM) market, as introduced at the CES 2020. In addition, the company will partner with specialized manufacturers in autonomous driving and robotics technologies, and will also focus on fuel cells, aiming to use them in a wide range of fields other than cars, such as ships, trains, and UAM aircraft.
Kia will also reorganize its business with a focus on EVs and Purpose Built Vehicles (PBVs). The PBV focuses on changes in logistics and delivery, and the idea is to improve efficiency by incorporating refurbishment and personalization, which are currently done by the user after purchasing the vehicle, depending on the application, and to provide car manufacturers with an assortment of vehicle lineups for various applications. The PBV market, which currently accounts for only 5% of global demand, is expected to reach 25% by 2030, and Kia plans to sell 1 million PBVs in the same year to establish its position as the world's No. 1 PBV automaker.
Kia plans to invest KRW 29 trillion over the six years through 2025 to strengthen its existing fields and enter new businesses. The company name was changed from "Kia Motors Corporation" to "Kia Corporation”, and Kia created a new logo.
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| Hyundai's Ioniq 5 (left) and Kia's EV6 (right) developed based on E-GMP | |
(Source：Hyundai Motor Company, Kia Motors Corporation)
Related reports:
Auto Shanghai 2021: NEVs of Non-Chinese OEMs (Apr. 2021)
Korean market and trends of domestic brands: Tax breaks boosting domestic sales (Nov. 2020)
Hyundai Motor Group: increasing electrified vehicle lineup with 44 models in 2025 (Jun. 2020)
CES 2020 Show Report: Renewed Expectations on ADAS vs. AV (Jan. 2020)
Frankfurt Motor Show 2019: Asian OEMs (Oct. 2019)
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