Hyundai mobility plans rely on electric-vehicle strategy
09 December 2019
9 December 2019
Hyundai has launched its new roadmap to secure a position as a frontrunner in the future mobility industry.
Under ′Strategy 2025′, the company will foster smart-mobility device and smart-mobility service as two core business pillars, and the synergy between the two pillars is expected to facilitate the company’s transition into a smart-mobility solution provider.
The smart-mobility device business will supply products optimised for the services and lay groundwork to foster the service business, while the smart-mobility service business will provide personalised contents and services on the devices to help secure a broader customer base.
Hyundai’s plans for smart-mobility device include product groups beyond automobiles such as personal-air vehicle (PAV), robotics, and last-mile mobility. Hyundai will reinforce its manufacturing capabilities to build products that offer customers a seamless mobility experience.
Building an EV market
To implement Strategy 2025 on the device side, Hyundai says it will aim for growth that is balanced and steady, seeking a balance between markets as well as models while prioritising long-term sustainability over short-term targets. The company also plans to increase profitability by simultaneously pursuing enhanced value for customers and innovations in cost structures.
In particular, the carmaker aims to secure leadership in electrification by selling 670,000 electric vehicles annually and become one of the world’s top-three manufacturers of battery and fuel-cell EVs by 2025.
On the smart-mobility service side, the company will aim for a business model that combines product and service and launch an integrated mobility platform to offer customers personalised contents and services.
To this end, Hyundai will earmark KRW 61.1 trillion (€46.3 billion) of investment until 2025 for research and development and further exploration of future technologies. In the same timeframe, the company will target an operating margin of 8% in its automotive business and aim for a 5% share of the global vehicle market.
′The key to our future strategy is to focus on customers and to present the most desirable products and services. We want to offer smart-mobility experiences that meet the shifting needs of our customers by leveraging advanced technology,’ said president Lee Won-hee. ′Transforming into a smart-mobility solution provider with comprehensive mobility solutions that combine devices and services will be the centrepiece of Hyundai’s future strategy.’