Hyundai Motor announced plans to introduce hybrid models across its Genesis luxury brand lineup by 2027. This marks a shift from the brand’s 2021 announcement, which aimed to skip hybrids and focus exclusively on electric and hydrogen vehicles by 2025. The revised strategy suggests that Hyundai is strengthening its hybrid offerings as a bridge to full electrification, especially as electric vehicle (EV) demand may remain sluggish for an extended period.
On Aug. 28, Hyundai Motor held a “CEO Investor Day,” attended by President and CEO Chang Jae-hoon, where the company unveiled its mid- to long-term strategy, dubbed the “Hyundai Way.” In addition to expanding its hybrid lineup, Hyundai also announced plans to launch an extended range electric vehicle (EREV) in the U.S. and China by 2027. The EREV is primarily an electric vehicle but includes a small gasoline engine that functions as a generator to recharge the battery, enabling a maximum range of up to 900 kilometers on a single charge.
Hyundai plans to increase its global hybrid offerings from the current seven models to a total of 14. Currently, only seven Hyundai-branded models, such as the Avante, Sonata, and Grandeur, are available as hybrids. The Genesis lineup will see the addition of hybrid versions of the G80 sedan, as well as the GV70 and GV80 SUVs. However, the electric GV90, currently under development, and the existing electric GV60 will not have hybrid variants.
In early 2025, Hyundai plans to launch a hybrid version of the Palisade, a mid-size SUV. Starting with this model, Hyundai will extend its vehicle-to-load (V2L) feature, currently available only in electric vehicles, to all hybrids. This feature allows the vehicle to power external electronic devices, making it particularly appealing for outdoor activities like camping.
Hyundai’s decision to pivot toward hybrids stems from their growing influence on the financial performance of major global companies. Consumers are increasingly gravitating toward hybrids, which are both environmentally friendly and more convenient than fully electric vehicles, which can be more expensive and challenging to charge.
Another key development unveiled by Hyundai is the EREV, aimed at international markets, specifically the U.S. and China. There are no plans to launch the EREV in South Korea at this time. The technology will first be applied to mid-size SUVs like the Hyundai Santa Fe and Genesis GV70. By reducing the battery capacity to 70% of a typical electric vehicle, Hyundai plans to price the EREV more affordably. While electric vehicles currently cost 30 to 40% more than comparable internal combustion engine vehicles after subsidies, hybrids are priced about 10% higher, and plug-in hybrids about 20% higher. Hyundai plans to price the EREV similarly to plug-in hybrids.
Hyundai has maintained its global electric vehicle sales target of 2 million units by 2030, including Genesis models, with an overall sales target of 5.55 million units. Despite the current slowdown in demand, the company remains committed to the long-term development of electric vehicles.
Additionally, Hyundai announced that it will return at least 35% of its net profit to shareholders annually over the next three years through dividends, stock buybacks, and cancellations. The company also plans to enter the autonomous vehicle foundry business, where it will manufacture vehicles based on autonomous driving software developed by specialized software firms.
To execute this strategy over the next decade, Hyundai plans to invest 120.5 trillion won. “The Hyundai Way is our flexible response system designed to secure sustainable leadership in an uncertain market environment,” said Chang Jae-hoon.
