Hyundai Reveals Strategy Plans And Investments For The Electrification Era In Investor Day Events

Hyundai RN22e, the forerunner of Hyundai's future high-performance electric car. (Doc. Hyundai)

JAKARTA - South Korean automotive giant Hyundai Motor Group (HMG), revealed its medium to long-term business strategy as well as financial plans at the 2023 CEO of Investor Day which took place in Seoul City, Tuesday, June 20.

In this forum, HMG officials including President and CEO Jaehoon Chang, explained the company's strategy in the future to shareholders, investors, and other stakeholders.

Chang revealed that the company's main goal is to take advantage of its knowledge and legacy of innovation in the combustion engine (ICE) business, the company is also highly committed to successfully switching to the electrification era through a new strategy, namely 'Hyundai Motor Way'.

HMG, according to Chang, will implement this strategy for the medium and long term and accelerate its transition to becoming a provider of smart mobility solutions by securing investment on a large scale of 109.4 trillion won (IDR 1270 trillion) in the next 10 years. In addition, to ensure leadership in the future mobility industry, Hyundai Motor decided to focus on future businesses such as autonomous vehicles, hydrogen, robotics, and advanced air mobility (AAM).

Of the amount of money invested, it includes funds to be allocated for EV development of 35.8 trillion won with HMG targeting sales of 2 million annual EV units by 2030.

With this period of time, it is hoped that manufacturers can develop electric vehicle production so that HMG becomes the leading manufacturer in producing EVs by utilizing its experience in vehicle production and sales. The EV development planning also includes introducing the latest generation modular architecture, strengthening EV production capacity, battery development capabilities, and the manufacturing business in the future.

Chang also emphasized the need to grow innovation stems from the development of technology that has been carried out in the past. So, it is hoped that the South Korean manufacturer can produce a different legacy in the future.

"Warisan yang berasal dari tempo coupe dan Ioniq 5 N, sebuah EV berperanka tinggi yang diluncurkan pada Juli, ini akan merangkasi dan melanjutkan warisan terndung dari Hyundai Motor Group", kata Chang dalam ruang media Hyundai, Selasa, 20 Juni.

As for autonomous vehicles, the IONIQ 5-based driverless robotaxi business operated by Hyundai Motor Group and Motional, a joint venture between Hyundai Motor Group and Aptiv, will launch in Las Vegas later this year. HMG plans to expand its services globally and lead the autonomous driver market and they have agreed to cooperate with Uber in autonomous robotaxi businesses across the United States in the next 10 years.

Meanwhile, for hydrogen vehicles, HMG plans to realize carbon neutrality through the 'Mobilize Energy' toolbox, with clean hydrogen, including plastic waste-based biogas and hydrogen, which powers EV production facilities and all the surrounding logistics, power plants, and infrastructure.

HMG is also aware that the energy market for hydrogen is still wide open. Therefore, Hyundai intends to commercialize electric vehicles for hydrogen fuel cells so that they can lead the global industry of the segment.