Hyundai Motor said on Dec. 4 that it will inject more than 61 trillion won by 2025 in a bid to transform itself into a smart mobility solution company.
It also presented its goal of increasing its operating profit ratio in the auto business to 8 percent, while expanding its global market share to 5 percent. Hyundai Motor announced the ‘2025 strategy’ in a hotel in Seoul on the same day.
Hyundai Motor will transform its current business structure centered on sales of finished vehicles into two major business structures: "Smart Mobility Device" and "Smart Mobility Service." By 2025, it is planning to become one of the top three electric vehicle manufacturers in global battery electric vehicle and hydrogen electric vehicle markets.
To achieve its 2025 strategy, Hyundai Motor said it will invest a total of 61.1 trillion won in strengthening competitiveness of existing businesses and securing capabilities for future projects by 2025, achieve an operating profit ratio of 8 percent in the automotive sector, and achieve a market share of 5 percent in the global auto market.
It has decided to invest 41.1 trillion won in strengthening competitiveness of current businesses such as products and current investments and spend 20 trillion won on securing capabilities for future businesses such as electrification, self-driving, artificial intelligence, robotics, personal air vehicle (PAV), and new energy.
It also raised its operating profit ratio target for the automotive sector to 8 percent in 2025, up from 7 percent in 2022. Based on cost competitiveness that considers profitability as the top priority, the company plans to increase percentage of electricity generation and actively respond to future businesses by establishing a foundation for intelligent mobility services.
By 2025, the company plans to expand global sales of battery electric and hydrogen electric vehicles to a total of 670,000 units (560,000 battery electric vehicles and 110,000 hydrogen electric vehicles) to become one of the top three global electric vehicle companies.
It plans to push for electrification of all new cars from 2030 in major markets such as South Korea, the U.S., China and Europe and from 2035 in emerging markets such as India and Brazil.