Hyundai Motor Company announced its financial and business objectives for the future at the 2023 CEO Investor Day event in Seoul. Banking on its electric vehicle strategy- 'Hyundai Motor Way', the firm is aiming to mark a shift to electrification. By making a sizable investment of KRW 109.4 trillion (Approximately Rs 6.93 crore) over the next ten years, the South Korean automaker plans to quicken its evolution as a solution provider for smart mobility. According to Hyundai, from the KRW 109.4 trillion, it will use around KRW 35.8 trillion (about Rs. 2.27 crore) for funding its future electrification plans. It includes an expenditure of KRW 9.5 trillion (about Rs 60,198 crore) on the development of batteries, with the remaining funds going towards creating the next-generation modular EV architecture and boosting EV production. The corporation wants to sell 2 million EVs annually by 2030. Let's take a closer look at Hyundai's new EV platform and other electric future goals.
Hyundai's New IMA EV Platform & Battery Technology
The South Korean auto giant will likely replace the current Electric Global Modular Platform (E-GMP) with a next-gen Integrated Modular Architecture (IMA) EV architecture. This new EV-specific platform will reportedly support electric cars from different brands under the Hyundai Motor Group. Hyundai intends to increase economies of scale and lower EV development costs with the IMA's more standardized modules and components. The automaker said that components exchange between various vehicle segments and body types will become possible, thanks to the new EV-specific architecture. Currently, Hyundai only makes midsize SUVs using the existing E-GMP. However, by incorporating the next-gen IMA, the carmaker will manufacture small to large electric SUVs, pickup trucks, and more.
For the new-generation EV architecture, the auto giant plans to use a variety of battery options, including LFP and next-generation NCM batteries. Aside from this, the corporation is also looking into several battery form factors. In addition, the firm intends to employ ultramodern technology that permits battery charging and discharging while driving, using a separate power bank, to increase the driving range. Further, it plans to install an AI-based battery management system, which will enable real-time monitoring and diagnosis of battery issues.
Apart from improving its inner abilities for battery development, the South Korean automaker has plans to go for some external partnerships. According to Hyundai, it intends to enlarge its external associations with businesses, start-ups, and colleges. To secure a consistent supply and optimal battery performance for its EVs, it is also forming JVs with battery manufacturers. Additionally, there are ongoing joint studies and equity investments in start-ups to hasten the development of next-generation batteries. Hyundai Motor is also working with enterprises like Solid Power to source materials and manufacturing process technologies for solid-state batteries. Additionally, it is also working with SES to create lithium metal batteries.
Some EV Production Enhancement Steps and More
Currently, the South Korean carmaker is producing EVs at its facilities in the United States, South Korea, the Czech Republic, and India. The percentage of EV manufacturing in the world is anticipated to rise from 8% this year to 34% in 2030. Keeping this in mind, the firm intends to boost output by region, employing a two-track strategy of establishing new EV plants and converting lines in ICE factories. It is not only constructing new EV-specific facilities to increase output for meeting electrification goals but also using its current ICE facilities.
Aside from this, the corporation is increasing its 2030 sales target from 1.87 million units to 2 million units. Also, by relying on the EV development system adopted by the new EV-specific architecture (IMA), high-margin derivative model operation, cost reduction through production facility operations strategy, and new revenue creation through SDVs, the company is seeking more than 10% profitability for EVs in 2030.
According to Hyundai, it wants to maintain its leadership in the future mobility sector. Hence for that, it will concentrate on future businesses like autonomous driving, hydrogen, robots, and advanced air mobility (AAM).