Hyundai Motor Group aiming to be a top 3 global EV producer by 2030 with investment of 24 trillion won

Hyundai Motor Group (HMG) is aiming to be one of the world’s top three EV manufacturers by 2030 through the combined sales of electric models from its Hyundai Motor, Kia and Genesis brands. To support this goal, the company says it plans to invest 24 trillion Korean won (about RM3.4 billion) in Hyundai Motor, Kia and Hyundai MOBIS (MObility Beyond Integrated Solution), also by 2030.

Through this investment, the group says it will expand annual EV production in South Korea to 1.51 million units and global volume to 3.64 million units. By the target year, the company says the total line-up will include 31 EV models across its brands, with mentioned models being the Kia EV9 three-row SUV that recently debuted this year, while the Hyundai Ioniq 7 arrives in 2024.

In October last year, HMG revealed that will develop two new EV platforms, with the eM architecture being dedicated to passenger vehicles when it is introduced in 2025. Meanwhile, the eS platform is of a “skateboard” design and will be used exclusively for purpose-built vehicles (PBVs), and the company also revealed Kia will build a new plant dedicated to such vehicles.

Both platforms will use the group’s Integrated Modular Architecture (IMA) that standardises batteries and electric motors to increase product development speed and efficiency. This will also help reduce costs, with the use of common parts making the upgrading of software systems easier to execute.

The group has also operated a programme of 5.2 trillion won (about RM17.5 billion) to better support its suppliers on their profit and loss, liquidity and competitiveness improvement measures. It notes that it will share cost burdens with its suppliers on the fluctuation of raw materials and reflect those changes in the prices of goods provided, paying around 3.4 trillion won (about RM 11.5 billion) for the increase in raw material delivery to more than 300 primary suppliers last year.

Additionally, it will help suppliers of internal combustion engine parts who wish to diversify their businesses by providing loans at interest rates lower than the market. Support will also be offered through external management consulting to suppliers seeking to develop new future business strategies and discover new business growth engines.

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