Hyundai plans to bolster its global market domination in the electric vehicle (EV) industry. Hyundai also plans to double its EV market share in the U.S., aside from its goal to increase its industry coverage by 7%.
Hyundai CEO Jaehoon Chang will invest billions of dollars towards business and software development.
Hyundai EV 2030 Goal
As reported by Forbes, the South Korean automaker plans to invest approximately $16 billion to develop its production of electric vehicles.
Aside from that, this comes from the company's goal to more than double its market share in the global electric vehicle market to approximately 7% by 2030.
This goal comes despite increased global competition from startups and traditional competitors in the EV industry.
According to Hyundai, by 2030, the automaker expects to sell 1.87 million electric vehicles per year worldwide under its main Hyundai brand and its luxury Genesis brand.
This new quota represents an increase from the previously discussed goal of 560,000 units by 2025.
In addition, Hyundai intends to launch 11 electric vehicles under its main brand and six under its Genesis brand by 2030. Kia, which is owned by Hyundai, also plans to introduce 11 electric vehicles by 2026, with seven of them being built on dedicated platforms.
During the company's 2022 CEO Investor Day virtual forum last week, Hyundai Motor's president and CEO, Jaehoon Chang, announced the move as a means of pursuing "sustainable progress for the company."
On the basis of a compound annual growth rate of 24.5% from this year to 2030, it is predicted that the market will be worth $957 billion by 2030.
Hyundai is pushing its effort into a global electric vehicle market that is expected to grow at a rapid pace over the next few years.
The company also works immensely in this vision as this can be an instrument to government-led efforts of reducing greenhouse gas emissions.
Hyundai's EV: How to Make Production Possible
To achieve the company's plan, Chang explained that Hyundai intends to hit its 2030 target by strengthening its electric vehicle lineups, optimizing production capacity, and ensuring hardware and software competitiveness.
In addition, an investment of $79 billion will be made to the company. The business investment includes 19.4 trillion won set aside for electrification and 12 trillion won set aside for software development.
Automotive News Europe reported that Hyundai intends to increase local battery sourcing through alliances with companies in various countries, including the United States.
Hyundai has stated that it has enough battery supply to last until 2023 and that it will increase its global supply to 170 GWh by 2030 in order to meet the demands of the upcoming electric vehicle push.
The company expects to obtain half of its next-generation, lithium-ion batteries in this manner by 2025.
Hyundai CEO Chang laid out its plan as the growing concern for the global chip shortage continues to rally. A global chip shortage sparked by pandemic-era demand has made it difficult to source key components for vehicle production.
According to estimates, the semiconductor shortage resulted in a reduction in the production of 11.3 million automobiles last year.
