Hyundai to sell 1.87 million EVs a year by 2030

Enhancing software for connectivity and autonomous driving, developing fuel cell commercial vehicles

2023/03/17

Summary

  The Hyundai Motor Group’s Hyundai Motor Company (Hyundai) and Kia Corporation (Kia) announced their respective mid-term business plans in March 2022, disclosing their strategic roadmaps to accelerate electrification. Hyundai plans to sell 1.87 million EVs a year by 2030 and launch 17 new battery EV (BEV) models, including those under the Genesis brand. It will gradually transform its plants in nine countries around the world into EV production facilities. In addition, it plans to build dedicated EV production plants in high-demand regions such as the U.S.

  Kia plans to sell 1.2 million BEVs a year by 2030, and will launch 14 new EV models including two electric pick-up trucks by 2027. While Korea is regarded as a development and production hub for EVs, the company will manufacture strategic EVs in the U.S., Europe, and China. Kia intends to raise its production capacity for EV batteries from 13 GWh in 2022 to 119 GWh by 2030. Regarding Purpose Built Vehicles (PBV), which are designed to meet various applications by users, it will release a dedicated PBV model in 2025.

  Hyundai plans to secure a sufficient number of EV batteries bby forming strategic partnerships with battery manufacturers in major regions. In Indonesia, Hyundai and LG Energy Solution Ltd. will establish a joint venture plant and start production of battery cells from 2024, while in the U.S., Hyundai will partner with SK On Co, Ltd. to manufacture battery cells starting from 2025.

  Hyundai is promoting the use of fuel cell systems for commercial vehicles. The company will introduce the Xcient Fuel Cell, a heavy-duty fuel cell truck, which has been supplied to Switzerland and Germany, into Korea and the U.S. It is developing a large fuel cell van jointly with Iveco and will market the NEXO fuel cell SUV in China. In Guangzhou, China, it is building its own fuel cell system R&D and production facilities and plans to supply them to Chinese manufacturers of fuel cell vehicles and ships.

  To strengthen its product competitiveness, Hyundai is enhancing software for connectivity and autonomous driving. The company plans to establish software units in Korea and overseas and increase software experts by 20% or more every year. The over-the-air (OTA) update function, which was first introduced into the GV60, will be adopted for all new vehicles starting in late 2022. By 2030, Hyundai hopes to earn 30% of its revenues from software-related businesses.

  The Hyundai Motor Group’s global sales volume was 6.85 million units in 2022. By automaker group, it ranked third behind the Toyota Group and the VW Group. Hyundai, including the Genesis brand, sold 3.94 million units, up 1.3% year-over-year (y/y), while Kia sold 2.92 million units, up 4.5% y/y. Both Hyundai and Kia recorded record-high sales revenue and operating profit. Hyundai’s business results improved due to increased sales of SUVs and Genesis brand vehicles, as well as favorable foreign exchange rates. Kia’s performance was supported by growing sales of high-profit models including the Sportage and Sorento and the depreciation of the KRW. In 2023, Hyundai expects to sell 4.32 million units (781,000 units in Korea and 3.54 million units in overseas markets) including the Genesis brand, while Kia intends to sell 3.2 million units (590,000 units in Korea and 2.61 million units in overseas markets).

Ioniq 6 EV9
Hyundai’s Ioniq 6 (The second model of the Ioniq EV brand series) (Photo: Hyundai) Kia’s EV9 midsize SUV, a dedicated EV model) (Photo: Kia)

 

Related reports:
Korea Next Gen Mobility Technology Expo 2022: Electrification Technology (Dec. 2022)
Korean market and domestic brand trends: Semiconductor shortages reducing production and sales (Mar. 2022)
IAA Mobility 2021: Hyundai Group's electrification and mobility strategy (Sep. 2021)
Hyundai Motor Group: Aiming to sell 1 million EVs a year in 2025-26 (Aug. 2021)

 

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