Hyundai’s Balanced Approach to Electrification: Expanding Hybrid and EV Offerings

Hyundai is charging ahead with its electric vehicle (EV) goals, but it's not leaving hybrids behind. Recognizing the varying demands across global markets, Hyundai plans to double its existing hybrid lineup, aiming for a total of 14 hybrid models across its Hyundai and Genesis brands. Interestingly, this marks the first time Genesis, Hyundai's luxury division, will introduce hybrids, reflecting a broader strategy to offer a diverse range of powertrains.

A Balanced Approach to Electrification

During its 2024 CEO Investor Day, Hyundai Motor Company laid out its medium- to long-term electrification strategy, underscoring its commitment to EVs as “the future of transportation.” However, Hyundai acknowledges that not all customers are ready to transition to full EVs just yet. To accommodate different preferences and readiness levels, Hyundai will continue to offer a range of vehicles, including internal combustion engine (ICE), hybrid, plug-in hybrid, electric, and even hydrogen fuel-cell vehicles.

Massive Investment for a Greener Future

Hyundai is making significant investments to back its electrification strategy. From 2024 to 2033, the company plans to invest KRW 120.5 trillion (approximately A$133 billion), which is KRW 11.1 trillion (about A$12 billion) more than its previous commitment. Nearly half of this investment—KRW 54.5 trillion (around A$60 billion)—is earmarked for research and development. Hyundai aims to achieve profit parity across all powertrain types by 2030, targeting an operating profit margin of over 10%.

Introducing Extended-Range Electric Vehicles (EREVs)

To bridge the gap between hybrids and fully electric vehicles, Hyundai is developing extended-range electric vehicles (EREVs). These vehicles, aimed at markets in North America and China, will combine the best features of both combustion engines and electric motors. EREVs will feature all-wheel drive with two electric motors, while a petrol engine will act solely as a generator to power the battery, offering a combined range of over 900km on a full charge.

This innovative approach allows Hyundai to use existing engines, reducing costs while providing an "EV-like driving experience." The first EREVs are set for mass production by the end of 2026, with sales expected to commence in 2027. In North America, Hyundai plans to launch EREV ‘D-class’ SUVs, potentially providing EREV versions of models like the Hyundai Santa Fe and Genesis GV70, targeting sales of over 80,000 units. In China, a more economical C-segment platform will be introduced, with an annual sales target of over 30,000 units.

Expanding the Hybrid Lineup

Hyundai is working on a new-generation TMED-II hybrid system, set to replace the existing TMED system. Scheduled to be introduced in production vehicles starting January 2025, this system will be utilized across 14 different models under the Hyundai and Genesis brands. The TMED-II will bring advanced features like smart regenerative braking and vehicle-to-load (V2L) technology, allowing owners to power external devices using the vehicle’s battery.

With this expanded hybrid lineup, Hyundai aims to boost its hybrid sales significantly, targeting 1.33 million hybrid units annually by 2028, representing a 40% increase compared to its previous global sales plan. The company anticipates strong hybrid demand, particularly in North America, where it expects to sell 690,000 hybrids annually by 2030. To support this growth, Hyundai is establishing versatile production systems and robust parts supply networks across its global factories.

EVs: The Heart of Hyundai's Future

While expanding its hybrid lineup, Hyundai is not losing sight of its EV ambitions. By 2030, the company plans to offer 21 different EV models, aiming for global sales volumes of two million EVs. This aligns with Hyundai’s broader goal of selling 5.5 million vehicles in 2030, up from 4.21 million in 2023. Hyundai will expand its lineup of high-performance N-badged EVs and plans to bring the N Vision 74 concept into production, transitioning from hydrogen to electric power.

Hyundai is also making significant strides in EV production capabilities. A new plant in the US will start building hybrids and EVs this year, and a dedicated EV factory in Ulsan, South Korea, is set to open by 2026. This will increase Hyundai's EV production capacity by 500,000 units.

Next-Generation Battery Technology

Hyundai is advancing its battery technology to improve EV performance and reduce costs. The company is developing next-generation batteries, including solid-state options, and plans to introduce a battery cell-to-vehicle (CTV) system, which integrates the battery directly into the vehicle's body structure. This innovation could make EVs up to 10% lighter than current models using cell-to-pack (CTP) systems.

By 2030, Hyundai aims to offer a range of batteries, from high-performance nickel cobalt manganese (NCM) to low-cost lithium iron phosphate (LFP) batteries, as well as a new, more affordable NCM battery. The company expects to enhance battery performance by over 20% through continuous improvements in energy density and other advanced technologies, such as AI-based battery life management and innovative cooling systems designed to prevent battery fires.

Conclusion: A Future of Diverse Choices

Hyundai's approach to electrification is both ambitious and balanced. By expanding its hybrid offerings, introducing innovative EREVs, and pushing forward with a robust EV strategy, Hyundai is positioning itself to meet the diverse needs of global customers. As the automotive landscape evolves, Hyundai’s commitment to a wide range of powertrains ensures that it remains at the forefront of the industry, catering to both today's consumers and those of the future.