Strategies

Hyundai enters the Extended Range car market. And challenges the Chinese and Japanese

The Korean group is preparing to land in the promising field of Range Electric Vehicles (EREV). They will be launched from 2027 and will have a range of over 960 km

by Mario Cianflone

4' min read

4' min read

Hyundai is betting on Range Electric Vehicles (EREV), i.e. electric cars whose batteries are recharged on board by a heat engine acting as a generator. This is one that has its roots in the recent history of the car but was then not properly developed for a variety of reasons. In recent years, however, manufacturers such as Nissan, Mazda and many Chinese groups have made a comeback, not least because it promises low overall emissions and reduced consumption. The Korean carmaker (parent company of a multinational that includes the Genesis brand and controls Kia) presented the company's medium-to-long-term vision at Investor Day in New York, the first to be held outside Korea. The vision will be based on the launch of hybrid models with EREV systems and a greater focus on digital technologies, particularly those falling within the scope of Software-Defined Vehicles.

The group is thus competing on a new front with Chinese and Japanese groups. The Extended Range models will debut in 2027 and will use high-performance batteries and motors to offer a driving experience similar to that of electric vehicles with a range of more than 600 miles (960 km) thanks to optimised integration between battery and motor, according to the Koran group.

Loading...

Unlike conventional EREVs, Hyundai's approach uses high-performance batteries produced in-house, achieving the performance of a true electric vehicle with less than half the capacity of the battery, reducing costs for customers while maintaining high range and performance, thus eliminating recharging anxiety. Hyundai's battery strategy is to achieve a 30 per cent cost reduction, a 15 per cent increase in energy density and a 15 per cent reduction in recharging time.

As far as Software Defined Vehicles (SDV) are concerned, Hyundai aims to develop a hardware architecture that relies on a kind of on-board server, a macro power unit i.e. a high-performance computer connected to area modules with less complex wiring and networking and no added controllers. All managed by upgradable and hardware-independent software.

At the heart of the company's SDV strategy is Pleos, an in-vehicle operating system that allows Ota software updates, feature customisation and a flexible driving experience. With separate hardware and software, Pleos offers a flexible plug-and-play environment. Hyundai will launch Pleos Connect, its next-generation infotainment system, from the second quarter of next year. Key features include multi-window functionality, user profile-based personalisation and an in-vehicle marketplace for third-party apps, creating new service-based opportunities. Hyundai therefore chooses the proprietary operating system route and the difficult road of the in-case developed store, rather than relying on open source solutions.

Artificial intelligence technologies also play a key role in the company's SDV vision. Atria AI enables autonomous driving without detailed maps, Gleo AI enables intuitive voice interaction and Capora AI improves fleet management through large-scale data analysis. Again, the approach is in-house.

In addition, the company will expand its hybrid model range to over 18 models by 2030, including the introduction of hybrid powertrains for the Genesis from 2026. The new Hyundai Palisade Hybrid will also feature next-generation TMED-II technology, offering increased performance and fuel efficiency.

Hyundai will launch its first mid-size pick-up before 2030 in North America, targeting one of the largest segments of the market. Since the launch of the Santa Cruz in 2021, the company has gained valuable experience and a strong presence, strategically positioning itself to expand its presence in the heart of the US market.

In the commercial vehicle segment, Hyundai will expand its portfolio in the North American market. This includes the existing XCIENT fuel cell trucks and Hyundai Translead trailers, alongside plans to enter the large electric van market. This offering will utilise the company's existing commercial vehicle production centres to support sustainable logistics solutions.

Hyundai is accelerating market penetration and technology development through alliances. The collaboration with Waymo includes the IONIQ 5 prototypes that have completed inspections and have been delivered for road testing in the US this year. These vehicles are equipped with Waymo's fully autonomous driving technology and mark an important milestone in Hyundai's autonomous mobility strategy.

A strategic alliance with General Motors includes five jointly developed vehicles that will be launched as early as 2028. Hyundai expects annual sales of these models to exceed 800,000 units once production is up and running. The range includes electric commercial vans for the North American market, as well as compact vehicles, compact SUVs, and compact and mid-size trucks for Central and South America, utilising GM's expertise and Hyundai's manufacturing capabilities.

Finally, Hyundai provided financial figures. It confirmed its commitment to reach 5.55 million global vehicle sales by 2030. Building on this momentum, electrified vehicles are expected to account for 60 per cent of total sales, reaching 3.3 million units, with significant growth expected in North America, Europe and Korea.

 

The revenue target was revised upwards to 5-6%, an increase of two percentage points from the January announcement. The company revised its operating margin (OPM) target to 6-7%, down one percentage point, related to the impact of new tariffs imposed by the US.

Hyundai announced an investment plan of KRW 77.3 trillion (around EUR 47 billion) over five years, from 2026 to 2030, an increase of KRW 7 trillion (over EUR 4 billion) compared to last year's forecast. The investment breakdown includes KRW 30.9 trillion for research and development, KRW 38.3 trillion for capital expenditure (CAPEX) and KRW 8.1 trillion for strategic investments.

This investment aims to strengthen global competitiveness through the development of software talent, expansion of local capacity and investment in strategic areas such as future technologies.

In order to accelerate localisation and improve profitability, the company will invest KRW 15.3 trillion to expand production capacity and create a robotics ecosystem in the US, as part of Hyundai Motor Group's larger USD 26 billion investment in the US.

Hyundai aims to achieve a sustainable operating profit margin of 7-8% by 2027 and 8-9% by 2030 through an increased product mix, including hybrid and Genesis models, a localisation strategy and increased cost efficiency.

From 2025 to 2027, Hyundai will implement a Total Shareholder Return (TSR) policy of more than 35%, as announced at CEO Investor Day 2024. This will be achieved through a flexible combination of dividends, share buybacks and share cancellations. The company will also maintain a minimum dividend per share (DPS) of KRW 10,000.

Copyright reserved ©
Loading...

Brand connect

Loading...

Newsletter

Notizie e approfondimenti sugli avvenimenti politici, economici e finanziari.

Iscriviti