Hyundai Motor Group lays bare business plans

HYUNDAI Motor Group (HMG) has brought in the new decade by announcing its future business direction, which will include the proliferation of electrified vehicles across its brands and the commercialisation of autonomous driving technology in coming years.

The new strategies will be made possible through an investment of approximately KRW 100 trillion (A$125 billion) spread evenly over the next five years, which will be used to help HMG achieve leadership in vehicle electrification, and the expansion of hydrogen and its mobility services.

Speaking at a New Year address at its headquarters in Seoul, HMG executive vice chairman Euisin Chung laid out the brand’s plan to increase its fleet of low-emission vehicles.

“To consolidate our leadership in vehicle electrification, we plan to operate 44 electrified models by 2025, including 11 dedicated BEV (battery electric vehicle) models, by bolstering the development of EV platforms and core components,” he said.

Currently, HMG boasts 24 electrified models including nine full BEVs. This will be expanded to 23 models by 2025, along with 13 hybrids, six plug-in hybrids (PHEVs) and two fuel-cell electric (FCEV) models.

HMG’s first dedicated BEV is expected to materialise next year, while a specified EV architecture development system will be applied to models due to launch around 2024.

It has confirmed hybrid and PHEV variants will be added to its current model range, with offerings such as the Kia Sorento, Hyundai Tucson and Hyundai Santa Fe set to get the low-emission treatment.

Mr Chung said that HMG was looking to be a global leader in FCEV technology, which it hopes to implement in a range of sectors not limited to automotive.

“In particular, in our fuel-cell electric vehicle business, where we boast the world’s top technological competitiveness, we will hit our stride by providing fuel-cell systems to customers not only in the automotive industry but also in other sectors,” he said.

“Furthermore, we will add momentum to expanding the hydrogen ecosystem and its infrastructure by cooperating with partners around the world.”

Having partnered up with engine and generator specialist Cummins last year, HMG will begin exporting its FCEV systems to Cummins and enter the US market this year, followed by Europe.

The long-term plan is to provide fuel-cell systems for other transport crafts such as vessels, railcars, forklifts and generators, with the goal of producing 500,000 FCEVs and 200,000 fuel-cell systems per year by 2030.

HMG will also partner with companies at home and overseas to expand the supply of hydrogen refuelling stations.

Leveraging its partnership with tech firm Aptiv, Mr Chung said HMG will aim to achieve “the world’s top safety and technological innovation competitiveness” in the field of autonomous vehicles.

HMG is targeting the commercialisation of autonomous tech by 2023, following the development of an autonomous driving platform in 2022. The tech will then be used in commercial applications by 2024.

It will also ramp up its ride-sharing business in 2020 through its MoceanLab mobility service company, which will begin operation in Los Angeles.

It will also expand its line-up of vehicles for its subscription service in various regions of Russia following its opening in Moscow last year.

Ride-sharing companies that HMG has invested in, such as Grab and Ola, will see expansion into markets such as India and southeast Asia, which will include the availability of Kona Electric models for use.

Mr Chung emphasised that within all its developments over the coming year, the Group’s focus will remain primarily on providing the customer with a satisfying product.

“I want to re-emphasise that the ultimate beneficiaries of all our efforts at transforming and innovating Hyundai Motor Group should be our customers,” he said.

“Their satisfaction and happiness in using our products and services remain the core value and true asset of our Group.”