Title: Hyundai Motor Eyes 5.55 Million Annual Sales by 2030, Pivots to Hybrids Amid EV Slowdown
By Heekyong Yang and Joyce Lee
SEOUL (Multibagger) - Hyundai Motor has unveiled an ambitious plan to boost its annual global sales to 5.55 million vehicles by 2030, marking a 30% increase from 2023 levels. To adapt to the shifting dynamics in the automotive market, the South Korean automaker is doubling down on its hybrid vehicle lineup, aiming to counter the recent slowdown in electric vehicle (EV) demand.
Strategic Shareholder Returns and Stock Buyback
In a move to further entice investors, Hyundai announced its intention to repurchase up to 4 trillion won ($3 billion) worth of stock between 2025 and 2027. Additionally, the company will guarantee a quarterly dividend of at least 2,500 won per share, thereby increasing its profit return to shareholders to 35%, up from the current 25%.
Following the news, Hyundai's shares surged by as much as 5%, closing the day with a 4.7% gain – a clear indication that the market had underestimated the new shareholder return policy.
Medium- to Long-Term Strategy
Hyundai, which ranks as the world's third-largest automaker by sales alongside its affiliate Kia Corp, is maintaining its EV sales target of 2 million units by 2030. However, the company has revised its hybrid sales goal upwards by 40%, aiming to sell 1.33 million hybrid units by 2028. This strategic pivot was laid out during an investor day presentation.
"Recently, the speed of conversion to electric vehicles has been slowing. As a result, demand for hybrids is increasing, and hybrids are becoming a basic option rather than an alternative to internal combustion engines," stated Hyundai Motor President and CEO Jaehoon Chang.
Doubling Hybrid Lineup
Anticipating a surge in hybrid demand, particularly in North America, Hyundai plans to double its hybrid model lineup to 14. Although the company did not specify a release timeline, it hinted at the potential for hybrid production at its new Georgia, U.S. plant starting in the first quarter of 2026. According to Global Chief Operating Officer Jose Munoz, about one-third of this plant's production capacity could be dedicated to hybrids when fully operational.
Extended-Range Electric Vehicles (EREV)
Hyundai's strategy diverges from its peers like Toyota and Ford by venturing into Extended-Range Electric Vehicles (EREV). EREVs feature larger battery packs than plug-in hybrids and operate solely on electricity, with a gasoline engine serving as a backup power source. Hyundai aims to start mass production of EREVs in North America and China by the end of 2026. These vehicles promise price competitiveness over traditional EVs and an impressive driving range of over 900 km (559 miles) on a full charge.
In China, Hyundai aims to sell 30,000 EREV units by focusing on compact models, while in the U.S., the target is 80,000 units, initially rolling out large SUV models and the Genesis luxury brand.
Autonomous Driving and Financial Outlook
On the technology front, Hyundai will offer its autonomous driving vehicle platforms to other companies interested in manufacturing self-driving cars. The firm, which recently posted record quarterly profit and revenue, plans to fund its enhanced shareholder return policy through its operations. Hyundai targets a 9-10% operating margin by 2027 and aims to exceed 10% by 2030.
"We will continue to pursue a profit-oriented strategy to achieve a mid- to long-term operating margin of 10% or more, which is the basis for the expansion of the shareholder return policy," said CFO Seung Jo Lee.
India IPO Proceeds
Hyundai also mentioned that it would update the market on the utilization of proceeds from an initial public offering (IPO) of its India operations once the deal is completed. According to sources, Hyundai aims to raise approximately $2.5-$3 billion from this IPO.
Analysis: What This Means for You
This comprehensive strategy highlights Hyundai's adaptive approach in a rapidly evolving automotive landscape. By expanding its hybrid lineup and introducing EREVs, Hyundai is positioning itself to capture market segments that are hesitant to fully commit to EVs. For investors, the enhanced shareholder return policy and stock buyback plan signal the company's commitment to delivering value, making Hyundai an attractive option for those looking to invest in the automotive sector. For consumers, the increased focus on hybrids and EREVs offers more versatile and affordable options in the transition towards full electrification, potentially providing more choices that balance performance, cost, and environmental impact.