Hyundai Motor President Jose Muñoz. Yonhap News. 

Hyundai Motor has removed its mid-to-long-term electric vehicle sales targets and shortened its investment planning horizon from 10 years to 5 years.

This move is seen as a measure to overcome the complex crisis facing the global automotive industry, including economic recession, the EV chasm (temporary demand slowdown), tariffs, and the end of US tax credits.

However, Hyundai Motor has affirmed its commitment to solidifying its position in its largest market, the US, by adopting an aggressive strategy involving increased investment and production, as well as new model launches.

Hyundai Motor announced its mid-to-long-term strategy and financial plans, which include these changes, at its "2025 CEO Investor Day" held at The Shed in Manhattan, New York, on the 18th (local time).

The most notable aspect of the announcement is the disappearance of the "electric vehicle sales target" that Hyundai Motor maintained until last year.

Hyundai Motor stated it would gradually expand its global eco-friendly vehicle sales from the current 1 million units to 3.3 million units by 2030, but did not separately disclose its electric vehicle sales targets.

This marks a significant shift from its announcement at last year's CEO Investor Day, where it stated its goal to sell 2 million electric vehicles by 2030.

The company appears to have shifted its sales target focus to eco-friendly vehicles, including hybrids, due to the darkening outlook for the EV market, triggered by the EV chasm and the termination of tax credits under the US Inflation Reduction Act (IRA).

Hyundai Motor plans to maintain its overall eco-friendly vehicle competitiveness by leveraging hybrids and extended-range electric vehicles (EREVs).

Hyundai Motor plans to expand its hybrid vehicle lineup to over 18 models by 2030, encompassing entry-level, mid-size, large, and luxury segments. This is double the current number of hybrid models.

The launch of Genesis's first hybrid vehicle and EREV is considered a key element of this strategy.

Hyundai Motor logo. Yonhap News. 

It is also noteworthy that the investment plan has been shortened to a five-year period, and the target operating profit margin for 2030 has been revised downward.

On this day, Hyundai Motor announced an investment of 77.3 trillion won by 2030, comprising 30.9 trillion won for research and development (R&D), 38.3 trillion won for facilities, and 8.1 trillion won for strategic investments.

The investment scale has increased by 7 trillion won compared to the 70.3 trillion won announced last year, and the investment horizon has been reduced from 10 years to 5 years.

Hyundai Motor's decision to halve its investment planning period reflects its intention to respond more agilely to global uncertainties such as US tariffs and the EV chasm.

Despite these strategic adjustments, the company continues its aggressive strategy in the US, its largest market.

Hyundai Motor announced that it will increase its US investment for 2025-2028 from the previous 11.6 trillion won ($8.8 billion) to 15.3 trillion won ($11.6 billion), an increase of 3.7 trillion won ($2.8 billion).

This aligns with the statement made by Euisun Chung, Chairman of Hyundai Motor Group, on the 11th (local time) at a US media event, where he said, "We will contribute more to the US market," despite the detention of Korean nationals at the battery plant.

North America accounted for 30% (610,000 units) of Hyundai Motor's global sales in the first half of this year (2.07 million units), making it the largest market. Considering this importance, Hyundai Motor had previously announced plans to invest $26 billion in the US over the next four years until 2028.

Hyundai Motor will expand the types of vehicles produced at Hyundai Motor Group Metaplant America (HMGMA), which was an EV production base, to include hybrid vehicles, increasing its annual production capacity from 300,000 units to 500,000 units. Through this, the company plans to increase the proportion of eco-friendly vehicle sales in North America from 30% this year to 77% by 2030.

In addition, targeting the US, the homeland of pickup trucks, Hyundai Motor plans to launch a mid-size pickup truck in the local market before 2030, following the compact pickup truck Santa Cruz launched in 2021.

The company is also accelerating joint development with General Motors (GM), North America's largest automaker, on five vehicle types: mid-size pickups, small SUVs, small passenger cars, small pickups, and electric commercial vans.

Hyundai IONIQ 6 N. Yonhap News. 

The company is also strengthening its position in the high-performance and luxury markets.

Hyundai Motor plans to increase the annual sales of its high-performance N brand to 100,000 units by 2030, its 15th anniversary.

Furthermore, the lineup, currently consisting of five models, will be expanded to over seven models by 2030.

Genesis has set a global sales target of 350,000 units annually by 2030, a 55% increase from this year.

The first vehicle from its high-performance trim, "Genesis Magma," the "Genesis GV60 Magma," is scheduled to be unveiled this year.

An industry official commented, "The content of this year's Investor Day announcement seems to reflect Hyundai Motor's determination to respond agilely to unforeseen complex crises."

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