Hyundai Motor Group to invest $87B over next 5 years; 44 electrified vehicles; new EV development system; hydrogen plans
Hyundai Motor Group (HMG) will invest more than KRW100 trillion (US$87 billion) over next 5 years—KRW20 trillion (~US$17.4 billion) annually to enhance its leadership in vehicle electrification, autonomous driving and mobility services, said Euisun Chung, Executive Vice Chairman (EVC) of the Group, at the company’s 2020 New Year ceremony at its headquarters in Seoul.
The Group’s electrified lineup, which consisted of 24 models in 2019, will be expanded to 44 models by 2025, including 13 hybrids, six plug-in hybrids, 23 battery electric vehicles and two fuel-cell electric vehicles.
The BEV lineup will increase to 23 models by 2025 from last year’s nine models, with the first dedicated BEV model to be launched in 2021.
A new EV architecture development system will be introduced and applied to models slated for launch in 2024.
Through the new EV architecture development system, Hyundai Motor Group will innovate its cost structure for electric vehicles by sharing components in their application to various models. It will also increase profitability and volume of each model through lineup optimization. It will streamline operation networks and introduce new sales methods, while securing a flexible production system that can respond to the fluctuating global demand.
This year, the Group will further bolster the sales of electrified models, adding hybrid and plug-in hybrid variants to its best-selling SUV models, including Kia Sorento, Hyundai Tucson and Hyundai Santa Fe.
Also included in the 2020 New Year’s message was the plan to pursue new technologies and projects that can provide human-centered smart mobility solutions in a wide range of areas, including robotics, Urban Air Mobility (UAM) based on the use Personal Air Vehicles (PAV) and smart city solutions, all of which would progress alongside automobile-based innovations.
We will push for open innovation that accommodates diverse capabilities outside the company. We will go anywhere there are the new technology, vision and talent to support our innovation drive.—Euisun Chung
The plan focuses on securing Hyundai’s leadership in the vehicle electrification, expansion of hydrogen industry ecosystem and self-driving commercialization, as well as the progressive expansion of its mobility services businesses.
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. Furthermore, we will add momentum to expanding the hydrogen ecosystem and its infrastructure by cooperating with partners around the world.—Euisun Chung
In 2019, the Group signed an agreement with Cummins Inc. to develop and commercialize electric and fuel-cell powertrains combining Hyundai’s fuel-cell system and Cummins’ electric powertrain, battery and control technologies. The Group will start exporting its fuel-cell systems to Cummins and enter the US market this year, followed by the European market.
In the future, the Group plans to supply fuel-cell systems to the transport sector—covering vehicles, vessels, railcars and forklifts— and power-generation sector—covering electricity production and storage—thereby delivering some 200,000 fuel-cell systems per year around the world by 2030. The Group will simultaneously establish a 500,000 units-per-year capacity for FCEV production in Korea.
The Group will strengthen its cooperation with partners in Korea such as Hydrogen Energy Network (HyNet), as well as partners overseas including Saudi Aramco, to expand the supply of hydrogen and charging stations. In addition, the Group will broaden its strategic collaboration with related enterprises around the world to set up hydrogen infrastructures.
The Group also aims to accelerate the development of the autonomous driving software technology and commercialize self-driving vehicles with SAE Level 4 and Level 5 technology in the near future to lead the industry.
In the autonomous driving industry which is the core of future vehicles development, we will attain the world’s top safety and technological innovation competitiveness through our U.S.-based venture to be jointly established with Aptiv, targeting the commercialization of the technology in 2023.—Euisun Chung
After developing an autonomous driving platform by 2022, the Group will operate autonomous vehicles in select regions in 2023, and lead to commercial productions by the second half of 2024.
Hyundai Motor Group will kick-start its car-sharing business in full swing in Los Angeles this year through its mobility service company MoceanLab, which was established in LA last year. The car-sharing service allows people to freely rent and return cars in the city of LA. In major regions of Russia, the Group this year will expand the lineup of offered vehicles for its vehicle subscription service first unveiled in Moscow last year.
The Group will also expand collaboration with mobility platform companies in which it has strategically invested, such as Grab and Ola. In India, it will launch new mobility services in collaboration with Ola, and in Southeast Asia, offer EV car hailing services by expanding the supply to the region’s largest car-hailing firm, Grab. The Group supplied 200 units of Hyundai Kona Electric SUVs to Grab last year for its car-hailing service in Singapore, and will expand the coverage to major Southeast Asian countries such as Indonesia this year.