Hyundai plans US$87b for EVs and AVs ­– GlobalData

Hyundai’s plans to ramp-up EV production aligned with new business priorities, research and consulting agency GlobalData says.

“The company intends to spend more than US$87 billion over the next five years on the development and production of EVs as well as autonomous vehicles (AVs),” GlobalData automotive consulting director Animesh Kumar says.

“By 2025, Hyundai plans to expand the portfolio of EVs to 44 models, which will include 23 battery EVs, 13 hybrid, six plug-in hybrids and two fuel-cell electric models.”

Kumar says EVs offer significant untapped potential to Hyundai both in the domestic (South Korea) and overseas markets.

The availability of incentives on EV purchase coupled with rising demand for personal mobility due to the COVID-19 pandemic has led to increased appetite for EVs in the South Korea market, he adds.

EV sales in South Korea are reported to have increased by 23% in H1 2020.

Kumar wonders if Hyundai’s plans to ramp up EV production could also be a strategy to counter the rapid growth of Tesla in South Korea.

“Hyundai has achieved major milestones related to EVs in 2020,” he says.

“It sold the world’s first mass-produced fuel cell heavy-duty truck – Hyundai Xcient. Its all-electric SUV, Hyundai Kona Electric, surpassed global sales milestone of 100,000 units in just over two years since its launch. The sales of Hyundai Kona, including EVs and HEVs, grew by 1.4% in the domestic market and 135% in the export market in H1 2020, according to company sales data.”

The company also unveiled its visionary ‘Prophecy’ concept EV.

“Post the success of the Kona Electric and the launch of Xcient, Hyundai looks all set to expedite its penetration in the EV market” Kumar says.

“Together with its corporate cousin Kia Motors, Hyundai targets to sell a million units of EVs in 2025.”

The company also aims to roll out 1600 hydrogen-powered trucks by 2025, Kumar adds.

“In recent months, Hyundai made several EV-related developments, which includes partnerships with leading battery manufacturers, technological innovations related to EV components, the launch of new concept vehicles, the development of new EV platforms and other significant investments in new EV development,” he says.

“The company’s recent collaboration with tech giants is expected to supplement the company’s EV vision through their respective technological expertise.”

Hyundai has partnered with Arrival and Canoo for co-development of all electric platforms for the company’s future EVs, Kumar explains.

“The company is also working closely with battery manufacturers including LG Chem, Samsung and SK Group to develop battery technology as well as ensure sufficient supply of batteries for its future EV products.

“These developments highlight the Korean OEM’s march towards electrification.”