Times are changing, and Hyundai Motor, one of the champions of the EV market, is rethinking its EV strategy. While EV plans are still on track, the Korean automaker is pushing more hybrids and extended-range vehicles, while also keeping hydrogen on its roadmap.
Hyundai has been praised for its Electric vehicle strategy, with its E-GMP architecture-based Ioniq models winning praise from the industry and customers. This has been further confirmed by the success of Hyundai's electric vehicles, as the Korean automaker has become a leading EV manufacturer in the United States. Along with its sister brands, Kia and Genesis, Hyundai has surpassed Ford as the second-largest EV brand in the United States, behind Tesla.
This shows that Hyundai has made some great strategic decisions and positioned itself to capitalize on the EV wave that has swept the U.S. after 2022. However, the trend is now reversing, with all automakers suffering from slower EV sales. Ford has already been forced to rethink its EV strategy, while GM has never taken its plans seriously. Tesla is also experiencing lower demand, although it is in a different league.
Hyundai also acknowledges the slump in the EV market and has adjusted its EV strategy to reflect the new reality. During its 2024 CEO Investor Day, the Korean automaker announced “a flexible response” to new market conditions. Hyundai still plans to sell 2 million EVs per year globally by 2030, as announced a year ago, but electric cars are no longer the core of its strategy. Instead, Hyundai is taking inspiration from Toyota and Honda and moving toward hybrid powertrains.
Hyundai plans to sell 5.55 million vehicles globally by 2030, up 30 percent from 2023. About two million of those will be battery-powered EVs, across a 21-model lineup. Its hybrid lineup will double from the current seven models to 14. Meanwhile, Hyundai plans to sell 80,000 EREV SUVs in North America and 30,000 EREV compacts in China.
The Korean automaker has announced plans to launch the second generation of its hybrid powertrains starting in January 2025. The upgrade will be rolled out across the group’s lineup and brands, from small vehicles to large and luxury models under the Genesis brand. Hyundai expects its hybrid sales to rise to 1.33 million vehicles in 2028, a target 40 percent higher than the one announced last year. This year, Hyundai expects to sell 510,000 hybrid vehicles.
However, the Korean automaker is betting big on developing what it calls extended-range EVs (EREVs), a kind of series hybrid. These are like electric vehicles with the wheels powered by electric motors. However, the battery is recharged using an internal combustion engine, with Hyundai saying its EREVs can achieve up to 600 miles (900 km) of total range on a full charge/tank. Hyundai plans to use a third of the battery capacity of a Electric vehicle in its future EREVs. The first EREV models will launch in North America as midsize SUVs starting in 2026, with sales beginning in 2027.
Hydrogen has made a surprising comeback on Hyundai's roadmap, as the Korean automaker looks to expand its fuel cell lineup. However, that doesn't mean Hyundai will launch new FCEVs. Instead, it will use hydrogen at its industrial sites, including its HMGMA in Georgia.