Hyundai positions for electric future with KRW 109.4 trillion investment plan.
Why it matters: Hyundai Motor Company unveiled sweeping mid- to long-term plans and financial strategies at its "2023 CEO Investor Day" in Seoul.
The automaker, known for its legacy in internal combustion engine vehicles, is transforming into an intelligent mobility solutions provider, signaling a significant shift in the industry's competitive landscape.
The Key Points:
- Hyundai is investing KRW 109.4 trillion over the next decade to fuel its transformation, focusing on electrification, autonomous driving, hydrogen, robotics, and advanced air mobility.
- A significant allocation of KRW 35.8 trillion is earmarked for electrification to achieve annual EV sales of 2 million units by 2030.
- This includes the development of next-generation EV modular architecture and the expansion of EV production capacity.
- Hyundai plans to replace its Electric Global Modular Platform with the new Integrated Modular Architecture to streamline EV development and reduce costs.
- Hyundai will invest KRW 9.5 trillion in battery capacity over the next decade, diversifying collaborations and developing next-generation batteries, including solid-state and lithium metal batteries.
The Big Picture: Hyundai's significant investment in the transition to smart mobility solutions indicates a robust response to the growing global demand for electric vehicles.
With the development of new technologies and the expansion of EV production, Hyundai's plans reflect a visionary approach to leadership in the EV era.
The company also announced progress on future mobility technologies, including a driverless robot taxi based on the IONIQ 5, to be unveiled in Las Vegas by the end of the year.
Hyundai's acquisition of Boston Dynamics in 2021 and the establishment of the Advanced Air Mobility and "Mobilize Energy" toolbox for hydrogen and green steel production further strengthen Hyundai's position in the industry.
From a financial perspective, Hyundai aims to balance investments and shareholder returns with its capital expenditure plan of KRW 109.4 trillion from 2023 to 2032.
Hyundai's initiatives demonstrate its commitment to innovation and transformation in the technology-driven mobility industry, positioning it as a resilient competitor in the evolving landscape.
Despite potential risks, the company is focused on strengthening its brand image and profitability while working to mitigate global supply chain issues through localized EV production and parts.