In Seoul, Hyundai Motor Company unveiled a strategic roadmap to accelerate its electrification ambition as it pursues sustainable progress for the company. President and CEO Jaehoon Chang and other executives presented the plans to shareholders and investors, and other various stakeholders at the 2022 CEO Investor Day virtual forum. The company also unveiled targets for sales and financial performance to be achieved by 2030.

Under the new plan, the company aims to boost annual global BEV sales to 1.87 million units and secure 7% of global market share by 2030 by strengthening its line-up with 17 new BEV models by 2030; 11 for Hyundai models and 6 for Genesis luxury brand. The previously announced target was 560,000 units by 2025. With 1.87 million BEV units, Honda projects EVs will represent 36% of all its sales.

• The new Hyundai BEV models will include three sedan models, six SUVs, one light commercial vehicle as well as one new type model. This year, Hyundai begin sales of IONIQ 6, followed by IONIQ 7 in 2024.

• The Genesis luxury brand BEV line-up consists of two passenger cars and four SUVs, including the Electrified GV70 launching this year. Starting in 2025, all newly launched models from Genesis will be electrified.

Presentation of Jaehoon Chang, President and CEO of Hyundai Motor Company

Hyundai also presented its mid-to long-term financial goals. The company earmarked KRW 95.5 trillion (US$79 billion) of investment for future businesses by 2030, including KRW 19.4 trillion (US$16 billion) for electrification and KRW 12 trillion (US$10 billion) for software capabilities.

By 2030, Hyundai also targets to achieve an operating profit margin of 10% or higher in its EV businesses by enhancing competitiveness in hardware and software capabilities with an expanded line-up. On a consolidated basis, it aims to secure an operating profit margin of 10%.

Presentation of Gang Hyun Seo, Executive Vice President and Head of Finance & Accounting Division at Hyundai Motor Company

Optimizing EV manufacturing capacity. Hyundai Motor aims to establish a high efficiency manufacturing process for BEV production to accelerate its transition into electrification. Hyundai Motor Global Innovation Center in Singapore (HMGICS), the cornerstone for innovation in the company’s mobility value chain, will build a human-centered manufacturing innovation platform.

The platform is intended to bring significant innovation in production efficiency through a flexible production system, advanced level automation and digital twin technology. The innovation will be expanded to global plants in the future.

Beyond existing BEV production facilities centered in Korea and the Czech Republic, Hyundai plans to expand its BEV manufacturing bases gradually, starting with an Indonesian plant that recently started operation. The Indonesian plant will start BEV production this year to help expand production volume.

As BEV production bases expand, the company is trying to increase the local procurement rate of batteries through strategic alliances with battery companies in major regions, including the US, to secure sufficient battery supply. Through these alliances, the company expects to obtain more than 50% of its next-generation lithium batteries for BEVs starting in 2025.

In addition, Hyundai will also diversify battery sourcing to consolidate the competitiveness of future BEVs. The company has secured sufficient battery supply to meet its sales targets by 2023. Hyundai plans to continue cooperation with various battery companies with an aim of securing 170 GWh of batteries for its models, including Genesis luxury brand by 2030.

Regarding the next-generation batteries, such as solid-state battery, Hyundai is cooperating with various global partners to improve energy density and cost efficiency.

New IMA architecture. Hyundai Motor plans to introduce an Integrated Modular Architecture (IMA), evolved from the electric global modular platform (E-GMP) that is the foundation of IONIQ 5 and GV60, successfully launched in 2021.

The IMA will be utilized not only to as Hyundai Motor’s passenger BEV platform but also as its exclusive purpose-built vehicle (PBV) platform, helping to streamline production processes and reduce cost.

The IMA is being developed to standardize not only a chassis but also battery system and motor. The innovative architecture can be used for BEV models in all segments, improving driving range.

Unlike the existing BEV development system, which has different types of battery packs for each model, IMA can be equipped with standardized battery packs to attach flexibly regardless of the model to improve cost efficiency. Through the cell-to-pack system, the new architecture can secure sufficient energy density and shorten charging time.

Five types of standardized motors also will be installed on IMA according to model needs. This modular motor system can secure competitiveness in terms of cost and weight as well as motor efficiency.

Software. Hyundai Motor will also strive to develop software architectures to provide a satisfying ownership experience for customers. The company plans to apply an over-the-air (OTA) update to new models that will be launched starting at the end of 2022, and expand it to all Hyundai models by 2025. In addition, the number of integrated control units can be reduced by one-third by 2030.

In terms of autonomous driving technology, the Highway Driving Pilot (HDP), a Level 3 autonomous driving function, will be applied to Genesis G90 starting in the second half of this year. The Motional, the autonomous driving joint venture between Hyundai Motor Group and Aptiv, plans to expand the service area of an IONIQ 5-based robotaxi following its commercial service commencement in 2023 and start self-driving delivery services this year through partnerships with Uber Eats.

The KRW 12-trillion investment in software capabilities will include KRW 4.3 trillion (US$ 3.6 billion)on technology development, such as connectivity and autonomous driving, KRW 4.8 trillion (US$4 billion) on strategic investment for startups and research institutions, and KRW 2.9 trillion (US$2.4 billion) on information and communications technology (ICT). After 2030, the company targets the revenue from software-related businesses to take approximately 30% of total sales.