Hyundai unveils new strategy emphasizing commitment to electric and hybrid vehicles

Hyundai Motor Company recently hosted its 2024 CEO Investor Day, where the company unveiled a new mid- to long-term strategy dubbed the Hyundai Way. Among the strategy’s many goals are expanded emphasis on electric vehicles (EVs) plus renewed focus on hybrid technology. While Hyundai has been a significant player in the hybrid market for several years with its TMED system, the company now plans to expand its hybrid offerings from compact and midsize cars to include luxury vehicles, increasing its product line from seven to 14 hybrid models. These will include hybrid options for all of its Genesis luxury vehicles (excluding models that are already electric).

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Hybrid vehicles: a stepping stone to full electrification?
Beginning in January 2025, Hyundai plans to integrate its forthcoming TMED-II system, an enhanced version of its existing hybrid technology, into production vehicles. Updates include smart regenerative braking and vehicle-to-load (V2L) functionality. The company has stated that it anticipates a surge in hybrid demand – a view other automotive manufacturers are taking as well. The unveiling of the Hyundai Way comes little more than a week after Ford announced the revamping of its own EV strategy with a new focus on hybrids in response to consumer anxiety about full electrification. Hyundai plans to increase its hybrid vehicle sales to 1.33 million units by 2028, with 690,000 units sold in North America by 2030.

To alleviate a hybrid supply shortage in North America, Hyundai will manufacture hybrids at its Hyundai Motor Group Metaplant America (HMGMA) in Georgia alongside its EV models, including the IONIQ 5 EV and forthcoming IONIQ 9 three-row electric SUV. The company also announced plans to develop a new extended range electric vehicle (EREV) that combines internal combustion engine (ICE) attributes with EV technology. The EREV will feature a new powertrain and power electronics (PT/PE) system that enables four-wheel drive with the application of two motors. The engine will be used solely for battery charging, with the vehicle itself being powered by electricity. According to Hyundai, the EREV will offer a range of more than 900km when fully charged. Mass production of the EREV in North America and China is expected to start by the end of 2026, with sales beginning in 2027.

The shift toward hybrids by manufacturers such as Hyundai and Ford is a response to slowing global EV sales. However, Hyundai expects that EV demand will pick up again by 2030 and will gradually increase its EV lineup, culminating in an offering of 21 models including affordable options alongside luxury and high-performance vehicles.

“In the electrification era, Hyundai has distinguished itself by rapidly launching a comprehensive lineup of EVs, catering not only to mass-market brands but also to the luxury and high-performance segments,” says Hyundai Motor Company President and CEO Jaehoon Chang. “Building on our advanced technology and dedication to innovation, we aim to secure a leading position in the market as the adoption of electrified vehicles gains momentum.”

New facilities and advanced battery technology
Hyundai’s plans are ambitious and include a target of two million EV sales by 2030. In pursuit of these goals, the company will open the HMGMA ahead of schedule this year, plus a dedicated EV plant in Ulsan, South Korea by 2026 with a planned production capacity of 500,000 units. It also intends to expand the advanced manufacturing methods used at its Hyundai Motor Group Innovation Center Singapore (HMGICS), including artificial intelligence (AI) and advanced vision systems, to other global sites.

Hyundai will also dedicate resources to next-generation battery development, including solid-state batteries, at a research facility scheduled to open at the company’s Uiwang Research Institute later this year. It plans to apply an optimized cell-to-vehicle (CTV) structure that integrates the battery and the vehicle body, which the company says will improve performance, reduce parts, and lighten weight by 10% compared to the previous cell-to-pack (CTP) model. Hyundai says it will develop an affordable nickel-cobalt-manganese (NCM) battery by 2030 with improved energy density.

As recent EV battery fires make headlines and contribute to unease among consumers, Hyundai is advancing battery safety technology. The company has already incorporated a battery management system (BMS) pre-diagnosis technology that detects minor battery abnormalities in EVs and alerts the user. It has also developed a battery system safety structure that prevents heat transfer between battery cells and is working on an advanced cooling technology that suppresses flames within the battery.

Goals include autonomous driving and hydrogen energy
Among Hyundai’s other announcements were the planned acceleration of autonomous vehicle development and hydrogen energy. The company intends to launch a foundry business to sell autonomous vehicles to self-driving software technology companies and to develop a platform for the implementation of Level 4 or higher autonomous driving. Addressing the concerns that many have about self-driving vehicles, Hyundai assures safety is a major priority – it’s establishing a system that collects autonomous driving data and simultaneously trains the AI model, as well as a deep learning model that performs perception, judgement, and control all at once.

Hyundai has been conducting research and development of hydrogen energy through its HTWO business, which it plans to expand. Through the continued pursuit of clean energy solutions, Hyundai intends to achieve net zero emissions by 2045.