Lee Min-hyung joined The Korea Times in 2014 and has worked as a journalist mainly in Korea’s finance, tech and automotive industry. He specializes in content creation, breaking news and in-depth analysis currently on transportation and mobility. You can reach him via mhlee@koreatimes.co.kr.
Hyundai Motor to invest $90.1 bil. in mobility, energy
Hyundai Motor CEO Chang Jae-hoon speaks during the carmaker’s annual CEO Investor Day in Seoul, Wednesday. Courtesy of Hyundai Motor
By Lee Min-hyung
Carmaker to start sales of extended range electric vehicles in 2027
Hyundai Motor has unveiled a two-track growth strategy on mobility and energy to elevate its position as the world’s top-tier smart mobility solutions provider, the automaker said, Wednesday.
Under the group’s mid- to long-term strategy, known as the Hyundai Way, the carmaker unveiled the plan during its annual CEO Investor Day event to invest 120.5 trillion won ($90.1 billion) until 2033. This represents a 10.1 percent increase from an investment plan shared last year.
The company clarified two key growth pillars for the strategy: electrification and hydrogen energy. More than half of the investment will be used to develop next-generation hybrid cars, extended range electric vehicles (EREV) and batteries for EVs.
Despite a slowdown in global EV industry growth, the company reaffirmed its commitment to preemptively tackling market uncertainties by introducing the EREV. Those vehicles are quite similar to hybrid cars, as they are equipped with both an internal combustion engine and a battery. But the engine in an EREV is used solely to charge its battery, making these vehicles more similar to typical EVs that are powered by an electric motor.
Hyundai Motor said it plans to mass produce EREVs in North America and China around the end of 2026, with sales set to start the following year. The upcoming EREVs from the carmaker will be able to travel more than 900 kilometers on a single charge, so the automaker expects them to serve as a bridge ahead of full-fledged electrification.
The headquarters of Hyundai Motor and Kia in Seoul / Courtesy of Hyundai Motor Group
As part of its mid-term strategy, the company plans to gradually expand its EV lineup to 21 models by 2030, aiming to establish itself as the world’s leading EV manufacturer.
The company will also offset temporarily falling EV demand by enhancing its competitiveness in hybrid cars. First, the carmaker is set to expand its hybrid lineup to 14 models encompassing not only small sedans but also luxury vehicles. Hyundai Motor has set an annual hybrid sales target of 1.33 million in 2028, up 40 percent from its previous goal announced last year.
“Hyundai Motor will adopt a flexible approach and respond swiftly to any market changes, ensuring we maintain sustainable leadership despite growing uncertainties. Our dual focus on mobility and energy will help us shape a new future for transportation,” said Hyundai Motor CEO Chang Jae-hoon.
Regarding its energy vision, the company emphasized the importance of solidifying its leadership as a hydrogen-powered mobility firm.
Earlier this year, at the Consumer Electronics Show (CES) in the United States, the carmaker pledged to establish a comprehensive hydrogen energy value chain, covering production, storage, and transportation. This initiative is part of its commitment to advancing carbon neutrality.
The carmaker also plans to develop nickel cobalt manganese (NCM) batteries on its own by 2030 by deepening research in next-generation batteries.