Hyundai outlines a series of goals designed to enhance the Korean automaker’s delivery of mobility solutions by 2025.
The two core business pillars of the “Strategy 2025” roadmap are Smart Mobility Device and Smart Mobility Service.
Smart Mobility Device will expand beyond automobiles to include personal air vehicles, robotics and last-mile mobility, while Smart Mobility Service will offer personalized services and content on an integrated platform.
“The two pillars sit atop three key directions that the company has defined: enhancing profitability in internal-combustion-engine (ICE) vehicles, securing leadership in vehicle electrification and laying the groundwork for platform-based businesses,” Hyundai says in a news release.
Hyundai’s strategic goals include selling 560,000 battery-electric and 110,000 fuel-cell electric vehicles by 2025; becoming a top three EV manufacturer by 2025; and offering electrified drivetrains by 2030 in major global markets including the U.S., China and Europe and 2035 in emerging markets such as India and Brazil.
“In particular, Hyundai will address vehicle electrification by first targeting younger demographics and enterprise customers with affordable battery-electric vehicles to achieve economies of scale,” the release says.
The Genesis luxury brand (below, left) will launch its first fully electric models in 2021, then expand its electric lineup in 2024, Hyundai says. The high-performance N brand also plans to launch electrified SUVs and other models.
Hyundai says SAE Level 2 and 3 autonomous driving technology, as well as Advanced Driver Assistance System for parking, will be available in all models by 2025. The company aims to develop a fully autonomous driving platform by 2022 and begin mass production by 2024.
The automaker says it will adopt a new global modular EV architecture to enhance the efficiency and scalability of product development, starting with vehicles launching in 2024. It also plans to expand partnerships with other OEMs.
Hyundai’s financial targets include investing 61.1 trillion won ($53.1 billion) in R&D and future technologies through 2025; a target operating margin of 8% in the automotive business and 5% market share by 2025 (up from 4% in 2018); and buying back 300 billion won ($252 million) in shares from the market by February 2020.
As part of Hyundai’s Smart Mobility Service objectives, the company plans to leverage its existing customer base to provide services linked to vehicles, including maintenance, repair, financing, insurance and EV charging.
“In the U.S., car sharing and robo-taxi service demonstrations will capitalize on the anticipated commercialization of autonomous vehicles of SAE Level 4 or higher,” the release says. “In Korea, Asia and Australia, Hyundai plans to enter the mobility service market by partnering with leading local players. In Europe and Russia, where the service industry is mature, the company will first focus on businesses that combine products and services.”
Speaking to investors and shareholders during a forum held this week in Seoul, Hyundai President and CEO Wonhee Lee says: “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.
“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.”