Hyundai Announces its Updated ‘Strategy 2025', a Bold Plan Which Includes Supplying Up to 10% of the World's EVs
【Summary】South Korean automaker Hyundai Motor Co announced its updated five-year plan called “Strategy 2025” that will transform the company into one of the world’s leading mobility providers and largest manufacturers of electric cars and hydrogen fuel cell powered vehicles. Hyundai aggressive plans include supplying 8-10% of the world’s electric vehicles by 2025.
South Korean automaker Hyundai Motor Co announced its updated five-year plan called "Strategy 2025" that will transform the company into one of the world's world's leading mobility providers and largest manufacturers of electric cars and hydrogen fuel cell powered vehicles.
The announcement was made at the company's 2020 CEO Investor Day, a virtual forum held in Seoul.
The updated Strategy 2025 builds the automaker's original roadmap announced in 2019 and includes three pillars, Smart Mobility Devices, Smart Mobility Service and hydrogen fuel cell solutions.
The three pillars include building more fully-electric vehicles, autonomous driving, developing urban air mobility, including electric vertical take off and landing (VTOL) aircraft, and fuel cell powertrains for cars, trucks and other commercial vehicles.
The updated timeline reinforces Hyundai's plan to lead the future mobility industry as a Smart Mobility Solution Provider.
Hyundai aggressive plans include supplying 8-10% of the world's electric vehicles by 2025. To achieve its goal, Hyundai will expand the offerings under it's IONIQ brand, which will be entirely made up of battery powered vehicles.
The comprehensive mid- to long-term strategy was presented by Hyundai President and CEO Wonhee Lee and other company executives to various stakeholders, including shareholders and company investors.
"The year 2020 has been the first year to implement our Strategy 2025. Despite a challenging business environment caused by the COVID-19 global pandemic, we have successfully established the foundation for business growth for the next five years. Hyundai is now equipped with new strategies to respond to a rapidly changing business environment," said President Lee.
Hyundai Motor also unveiled its mid- to long-term financial goals, which include an investment of KRW 60.1 trillion ($56 billion) by 2025 and achieving a 5% share of the global automotive market.
Updated Strategy 2025
At the beginning of the COVID-19 pandemic, Hyundai Motor predicted the crisis would rapidly shape the automotive industry and increase consumer demand for sustainable solutions, which includes the global transition from fossil fuels and increased investments in hydrogen fuel cell technology.
A big part of Hyundai's plans are investments in hydrogen fuel cell technology as most of the world's automakers are focusing solely on electrification, with the exception of Toyota.
Hyundai even aims to build an entire fuel cell ecosystem beyond the auto industry. The company plans to expand application in all transportation areas such as cargo ships, trains, forklifts and urban air mobility (UAMs).
Hyundai's Push to Supply Up to 10% of the World's EVs
Perhaps Hyundai's biggest effort initially will be to develop many more fully-electric models. The company expects to introduce more than 12 battery electric vehicles (BEVs), many of which will be built on the automaker's new dedicated EV platform architecture named E-GMP.
The company's renewed push to introduce electric vehicles starts with the launch of IONIQ 5 crossover in 2021. By 2025, Hyundai plans to sell 560,000 EVs per year.
Starting from 2030, the company will gradually expand its BEV offerings in key markets such as the U.S., Europe and China, eventually aiming to fully electrify its product lineup in major global markets by 2040.
Hyundai also plans to build more affordable EVs for emerging markets, such as India, Russia and Brazil.
To achieve this goal, Hyundai will streamline its manufacturing through increased parts standardization to reduce costs. To meet diverse needs of regional customers throughout the world, the company plans to produce EVs optimized for various regions.
In addition to leading in EV manufacturing models, Hyundai will also make efforts to expand EV charging infrastructure in the regions where it plans to sell more EVs.
The company plans to build 20 high-speed charging stations in South Korea by 2021. Outside of Korea, Hyundai will continue to work with stakeholders on high-speed charging networks, including its existing collaboration with charging infrastructure operator IONITY in Europe.
For Hyundai's luxury brand Genesis, the company will offer a dedicated BEV model. Following the Korea and U.S. markets, Genesis plans to expand its presence in China, which is the world's biggest auto market, as well as Europe. Hyundai's plans for the Genesis nameplate is to turn it into an eco friendly, yet luxury flagship brand.
Urban Air Mobility (UAM)
To take the lead in the UAM market, Hyundai will build a family of air vehicles for both passengers and cargo transportation.
In January, Hyundai presented its vision for future mobility by introducing the ‘S-A1' UAM concept model earlier this year at CES in Las Vegas.
The company plans to introduce an Unmanned Aircraft System (UAS) with hybrid powertrain designed to carry cargo in 2026. Following this will be the launch of an all-electric UAM model optimized for intra-city operations in 2028.
Sometime after 2030, the company plans to launch regional air mobility that connects adjacent cities. Hyundai will continue to collaborate with private and public sectors to create a safe and efficient UAM ecosystem that is acceptable to the general public.
The company plans to develop hydrogen powertrain for aviation using its own fuel cell technology that the company says will offer unrivaled efficiency and flight range.
Autonomous Driving Technology
One key initiative that Hyundai shares with other automakers is speeding up its efforts to develop autonomous driving technologies, especially in the area of sensor fusion and an integrated controller.
The sensor fusion technology that integrates, and processes all of the data collected from various sensors of self-driving vehicles. This includes radar, cameras, lidar. Hyundai says it will add more cameras and start using lidar sensors on mass production vehicles to further improve the perception ability.
To support sensor fusion, which requires massive processing capabilities, Hyundai is developing a next-generation integrated controller that includes high-performance processors. Hyundai says its next-generation controller will support level 3 self-driving technology, self-parking, and deep learning-based image recognition technology.
Hyundai plans to offer models equipped with level 3 autonomous driving technology by 2022.
In addition, the company will accelerate commercialization of level 4 and 5 technologies through collaboration with partners around the globe.
The establishment of Motional Inc., a joint venture between Hyundai and Aptiv lnc., is part of Hyundai's efforts for global cooperation. Hyundai plans to continue its cooperation and strategic investment on global companies in the U.S., China, and Israel, while continuing its in-house efforts to advance self-driving technologies for various applications.
The Development of Hydrogen Fuel Cell Technology
Hyundai also introduced today a new brand called "HTWO" to represent the company's hydrogen fuel cell system. The launch of the new fuel cell system brand will help facilitate Hyundai's global fuel cell business and grow the hydrogen ecosystem.
HTWO will develop a next-generation hydrogen fuel cell system that can be applied to various forms of mobility such as UAM, cargo ships and trains. The initial focus of Hyundai's fuel cell efforts will be for major hub regions in South Korea, the U.S., Europe and China.
It's safe to say that Hyundai's Strategy 2025 will require serious financial commitment.
Out of the $56 billion total the company is investing, over half will be allocated for R&D and capital expenditures, while the remaining funds will be dedicated to future technologies, including electrification and fuel cells.
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