Electromobility: Hyundai takes to the fast lane

Electromobility: Hyundai takes to the fast lane

Business news |
By Christoph Hammerschmidt

At its investor day, Korean automaker Hyundai announced plans to transition its model lineup to electric powertrains sooner than previously planned. 

The company has raised its sales targets for electrically powered passenger cars: The Koreans want to sell 2 million e-cars by 2030. Previously, the target was 1.87 million vehicles. Hand in hand with the electrification of the powertrain, the company wants to modernize its business model and transform itself into a provider of intelligent mobility. To this end, Hyundai’s management plans to invest KRW 109.4 trillion over the next ten years, the equivalent of around € 78 billion. KRW 35.8 trillion (€ 25.5 billion) has been earmarked for electrification. This includes the equivalent of just under €6.8 billion for the development of batteries. The rest will be spent on developing new vehicle and electronics architectures and building new factories.

Specifically, Korea’s largest automaker plans to develop a new dedicated platform for electric vehicles under the name Integrated Modular Architecture (IMA). This is to replace the current two-year-old platform known as E-GMP. In addition, Hyundai intends to further develop not only battery technology, but also the value chain. In particular, this includes stable procurement processes; in addition, the development capability is to be strengthened.

In order to achieve the necessary production capacities for electric vehicles quickly and without unnecessary expenditure, Hyundai not only wants to build new production facilities, but also repurpose existing production facilities for vehicles with combustion engines.

In further developing its business model, Hyundai is also focusing on expanding its relationships with strategic partners. Development targets include autonomous driving, software, robotics, advanced air mobility and hydrogen technology.

Future mobility will also take place in the air

Market observers see the competitive environment as giving Hyundai an advantage, especially over its Japanese rivals. That’s because Hyundai’s Ioniq 5 and Ioniq 6 e-models rank fifth among electric car makers worldwide in terms of units sold, and with 109,000 units sold, it is well ahead of its Japanese rivals.

Hyundai considers the U.S. and Europe to be key markets for its electric vehicles. In Europe in particular, Hyundai’s management expects a rapidly growing acceptance of electric mobility: By 2030, the share of electrically powered cars will rise from the current 7% to 54%, the experts led by Hyundai President and CEO Jaehoon Chang have calculated.

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