Hyundai Motor Co, the South Korean automaker, has announced that it will invest about 109.4 trillion won ($85.4 billion) in the next decade to meet the growing demand for electric vehicles (EVs) and batteries.
The company said on Tuesday that it plans to spend about 35.8 trillion won ($28 billion) on EVs by 2032, aiming to sell 2 million EV units annually by 2030. It also said it will invest 9.5 trillion won ($7.4 billion) on batteries and develop next-generation batteries with higher energy density and efficiency.
Hyundai Motor, which is among the world’s 10 biggest automakers by sales with its affiliate Kia Corp, said it will increase the production of EVs in the United States, its biggest market, from 0.7 per cent of its output now to 75 per cent by 2030.
The company said it will introduce competitive lithium-iron-phosphate (LFP) batteries for the first time around 2025 and source more than 70 per cent of its batteries through its joint ventures by 2028 and beyond. It also said it will collaborate with specialized companies and startups, as well as establish joint ventures with battery companies, to ensure stable supply and innovation.
Hyundai Motor said it aims to achieve an operating profit margin of 10 per cent or higher in the EV business by 2030, as it faces increasing competition in the EV market from rivals such as Tesla, Volkswagen and Toyota.
The company also said it will reduce its presence in China, where it has been struggling with declining sales and market share, by halting production at another plant this year and cutting down the number of models from 13 to eight.
“Hyundai Motor is leveraging its heritage of innovation and knowledge accumulated over a long period of time … amidst seismic change in the industry with competition intensifying in a bid for leadership in the electric vehicle (EV) market,” the company said on its investor day.
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