Automotive giant Hyundai continues its development and stable growth in the sector with a brand new strategy. Because today the automotive industry is undergoing a major change. The patterns and driving patterns we know are being replaced by alternative mobility. Hyundai, one of the pioneers in this field, announced its bold roadmap to consolidate its leadership in future mobility solutions. The South Korean company will invest 2025 billion USD in R & D in line with the 51 strategy. Hyundai will also increase its operating margin in the automotive industry to 8 percent and target 5 market share. In addition, 2020 plans to take back Korean Won worth 300 billion (approximately 250 million USD) as of February and thus aims to increase the value of its shareholders and stakeholders and expand its transparent communication in the market.
Within the new roadmap called Strategy 2025, the company's business plan is divided into two main branches: Rational Mobility Tools and Rational Mobility Services. With the synergy between these two lines of business, Hyundai is expected to become the Rational Mobility Solution Provider.
The Rational Mobility Tools line of business will provide products optimized for services and serve as the key to the advancement of the service sector. On the other hand, the Rational Mobility Services business line will provide the services of personalized content and tools to reach a wider customer base.
Hyundai's Rational Mobility Vehicle plans will include a broad range of products beyond Personal Aircraft (PAV), robotics and end-transport mobility, the ultimate pillar of transport. Hyundai will consolidate its production facilities and download products from the bands that will provide customers with perfect mobility.
Rational Mobility Service will be a brand new area to play a key role in Hyundai's future business. The services and content will be personalized and provided from an integrated platform to maximize customer experience.
Under these two main paths, there are 3 company-defined directions: increasing profitability in vehicles with an internal combustion engine, leading the way in electric vehicles and creating the basis for platform-based work.
Strategy for Vehicles Hyundai, which aims for balanced and stable growth within 2025, will keep the balance between markets and models and will prioritize long-term sustainability based on short-term targets. The company is also looking for plans to increase profitability in order to create value for customers and will innovate in cost structures.
In line with this, Hyundai aims to reach the leadership of 670 thousand electric vehicle sales annually and become one of the world's 2025 manufacturers in battery and fuel cell electric vehicles as of 3. On the Rational Mobility Services side, the company's goal is to create a business line that brings products and services together and to create an integrated mobility platform that provides personalized content and services to customers.
Hyundai's comprehensive mid- and long-term strategy was shared by Wonhee Lee, President and CEO of the company during the “CEO Investor Day Se in Seoul, where many shareholders and investors participated. Anahtar The key to our future strategy is to focus on customers and deliver the most desirable products and services, Lee Lee said. Using advanced technology, we want to meet the changing needs of our customers by providing rational mobility experiences. At the heart of Hyundai's future strategy will be transforming into a Rational Mobility Solutions Provider, combining tools and services with comprehensive mobility solutions. ”
Rational Mobility Tools
Under Rational Mobility Vehicles, Hyundai's strategy will be to increase profitability and maintain leadership in electric vehicles while maintaining a competitive edge in vehicles with internal combustion engines. The company aims to achieve balanced and stable growth by creating products that meet the needs of the regions.
Hyundai will reach young consumers and entrepreneurial customers with electric vehicles that are primarily accessible. As of 2025, the company aims to sell 670 thousand electric vehicles per year and aims to build 560 thousand of this number with direct electric and the remaining 110 thousand with hydrogen-fueled fuel cell electric vehicles. The goal will be to launch most of the emerging vehicles as electric, with Korea, the US, China and Europe as the priority for 2030, and to convert these vehicles to electricity in growing markets such as India and Brazil by 2035.
The Genesis brand will launch its first electric vehicle as of 2021. As of 2024, it will expand its range of electric vehicles. SUVs and electric vehicles will be prepared under the brand N, the high-performance unit, thus strengthening Hyundai's power. Cost structures will be redesigned with an innovative approach and quality and cost innovations will be implemented to increase customer value.
Within the scope of quality innovations, the aim is to increase customer value in three rational ways: innovative digital user experience (UX), connected services based on AI (AI) and autonomous driving with safety as its priority. SAE Level 2 and 3 Advanced Driver Assistance System (ADAS) for autonomous driving technology and parking will be available on all models at 2025. The company will develop a fully autonomous driving platform as of 2022 and will start mass production as of 2024. Hyundai's plan to offer differentiated vehicle features is aimed at reducing volumes and increasing brand perception.
For cost innovation, the company will implement a new global modular electric vehicle architecture, which will improve productivity and product development scaling for vehicles to be released by 2024. The company's plans include renewing the sales method with organizational optimization through new sales methods, optimizing production on demand and expanding partnerships with other suppliers.
Rational Mobility Services
The basis for Hyundai's future growth will be Rational Mobility Services, which combines tools and services that will provide customers with a personalized mobility lifestyle.
The company will strengthen its customer base by connecting to vehicles and providing services such as maintenance, repair, crediting and charging. In addition, different customer groups will be reached with extended services. Hyundai will create an integrated mobility platform that can analyze data inside and outside the vehicle through vehicle connections. Services will be produced according to the expectations of customers in all areas of their lives such as shopping, monitoring and transportation.
Strategy 2025 will also provide regional optimization of services. For example, in the United States, vehicle sharing and robotics applications will be provided by SAE Level 4 and above autonomous vehicles. Cooperation with leading players in markets such as Korea, Asia and Australia. Organization and management reform plans are also important for the implementation of the strategy. The company will develop new systems such as data-driven decision-making, employee performance assessment and process improvement and the creation of next-generation enterprise resources. In addition, a flexible organizational structure will be established and a corporate culture that acts under the umbrella of communication and integrity will be established.
Hyundai has also set financial goals within Strategy 2025. From 2020 to 2025, 6 will invest R & D and future technology in the annual period of 61,1 trillion Korean Won (approximately 51 billion USD). Its 41,1 trillion Won will be spent on products and capital to increase competitiveness in existing business lines. 20 trillion Won will be invested in future technologies such as electrification, autonomous driving, artificial intelligence, robotics and new energy fields.
Hyundai's operational profit margin will be 2025 percent at 8 in the automotive industry. This means revising the previously targeted 2022 percent for 7. In the name of improved profitability and cost competitiveness, the share of electric vehicles in the product range will be increased and used as a basis for achieving the goal of new mobility services. Genesis' success in the global luxury vehicle segment will be evaluated to increase the company's profitability.
Cost development programs will increase the company's efficiency in the parts supply chain. Vehicle architecture processes will be optimized for the region and innovative production technologies will be implemented. Thanks to the advanced product range and competitive new models, expenditures will be reduced and the quality costs will be reduced thanks to the pre-quality control mechanism. Hyundai's 5 market share target means an increase of 2018 points above the 4 share of 1. To achieve this goal, the company will overcome the fluctuating demand in separate markets with flexibility and competitive mobility services.
Hyundai's first shareholder maximization plan announced at 2014 was increased to 2015 Won per share at 4.000. The company, which has made a large buy-back in 2018, will receive another 2020 Billion Won in 300.
President Lee concludes: “Hyundai zamthe moment will put its customers first and make people's lives quality zamwill work to combine in moments. We will do our best to prepare ourselves for the future, lead the mobility industry and increase our shareholder value ”.