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 $56 bil. to refine eco-friendly portfolio
Hyundai Motor CEO Jose Munoz speaks during the carmaker's CEO Investor Day in New York, Thursday (local time). Courtesy of Hyundai Motor
By Lee Min-hyung
Carmaker sets sales target of 5.5 million by 2030
Hyundai Motor will make a large-scale investment worth $55.7 billion (77.3 trillion won) to refine its portfolio for eco-friendly vehicles and strengthen its global position as an advanced electrification powertrain maker, the carmaker said Thursday.
Under the five-year investment plan which starts in 2026, the carmaker will place its strategic focus on diversifying its green car lineups, so it can achieve annual sales of 5.5 million vehicles by 2030.
The strategy was unveiled during its first overseas CEO Investor Day in New York. The carmaker decided to hold this year’s event in the United States, in an apparent display of strong commitment to the market, as the Donald Trump administration is stepping up regulatory pressure on foreign carmakers.
Hyundai Motor plans to overcome its recent earnings fall — triggered by a 25 percent tariff from the U.S. — by expanding its eco-friendly powertrains and launching more diverse cars in the global market.
In 2027, the carmaker is scheduled to introduce its first extended-range electric vehicles (EREVs). EREVs refer to vehicles utilizing high-performance batteries and motors, with their engines used only for charging their batteries. Hyundai Motor’s upcoming EREV will be able to drive up to 960 kilometers on a single charge through its optimized battery-engine integration.
Hyundai Motor CEO Jose Munoz expressed confidence in breaking through the challenges with the carmaker’s advanced electrification technologies.
“In an industry facing unprecedented transformation, Hyundai Motor is uniquely positioned to win through our unmatched combination of compelling products, manufacturing flexibility, technology leadership, outstanding dealer partners and global scale,” he told investors during the event.
“We are delivering comprehensive electrified portfolios across all segments, localizing production in key markets and leveraging breakthrough technologies from software-defined vehicles to next-generation batteries.”
Hyundai Motor's flagship IONIQ 5 EV / Courtesy of Hyundai Motor
The carmaker aims to increase its sales portion for eco-friendly cars. Electrified vehicles will account for some 60 percent out of the 5.5 million global sales target by 2030, the company said. Hyundai Motor is anticipated to achieve significant sales growth particularly in North America, Europe and Korea for the next few years, the carmaker said.
The company will launch differentiated models tailored for each region. The carmaker’s upcoming IONIQ 3 electric hatchback is particularly aimed at boosting its sales in Europe. For China, the carmaker plans to launch its Elexio all-electric SUV this month. It is also scheduled to release its compact electric sedan for the Chinese market next year.
Hyundai Motor will also invest more in research and development for fuel cell electric vehicles (FCEVs) to become the world’s most influential carmaker in eco-friendly mobility.
It will also produce more than 80 percent of vehicles sold in the U.S. domestically by 2030, and gradually reduce its shock from the tariff.
Hyundai Motor is set to increase its production capacity across the globe by more than 1.2 million vehicle by 2030. This includes 500,000 new vehicles manufactured at Hyundai Motor Group Metaplant America in Georgia, 250,000 in Pune, India, and 200,000 from its EV plant in Korea’s southeastern city of Ulsan.
India is another major strategic market for Hyundai Motor along with the U.S. The carmaker said it will turn the Indian manufacturing facility into its hub for exports to other emerging markets.
Genesis, a luxury brand under Hyundai Motor Group, will also achieve its annual global sales target of 350,000 vehicles by 2030. This is an increase of some 55 percent from the brand’s sales projection for this year.
Hyundai Motor updated its annual earnings guidance during the latest event. Early this year, the carmaker set its sales growth target in 2025 at 3 to 4 percent from a year earlier, but revised it up to 5 to 6 percent. Reflecting on the aftermath of the tariff shock, however, the carmaker downgraded its estimated operating profit to sales ratio this year to 6 to 7 percent from an earlier 7 to 8 percent.