Hyundai Motor Co. CEO José Muñoz announced on March 20 that the company plans to invest $90 billion over the next decade to develop 21 new electric vehicle (EV) models and expand its hybrid lineup.
This move comes as other global automakers are scaling back EV investments amid prolonged market stagnation, signaling Hyundai’s commitment to solidify its leadership in the EV sector.
Muñoz emphasized the company’s strategy to continuously expand the Ioniq lineup to achieve greater economies of scale. He also highlighted efforts to reduce battery costs, enhance efficiency, and extend driving ranges.
Addressing challenges such as the EV market slowdown and deteriorating global trade conditions, Muñoz pledged to confront these issues head-on.
Last year, Hyundai experienced declines in operating profit and global sales for the first time in four years. Also, this year, the company faces significant uncertainties in its largest overseas market, the United States, due to potential tariffs.
What is more concerning for the company is that domestic demand in S. Korea remains sluggish, and sales are decreasing in most overseas markets except the U.S. The rapid growth of China’s EV market, where Hyundai’s market share hovers around 1%, also poses challenges.
According to SNE Research, China’s share of global EV sales reached 65.9% last year, up approximately six percentage points from the previous year, while the shares of Europe (17.6%) and the U.S. (10.4%) both declined
To counter these challenges, Muñoz outlined a strategy to optimize operations by region to increase market share and improve profitability. This includes effectively responding to varying regulations and market conditions, localizing production, and diversifying parts sourcing to optimize the supply chain.
In the U.S., Hyundai plans to mitigate tariff risks by increasing local production. Muñoz mentioned the establishment of Hyundai Motor Group Metaplant America (HMGMA) in Georgia, which will implement a mixed-production system to include hybrid models. He expressed confidence that Hyundai’s localization strategy in the U.S. would allow the company to adapt flexibly to any policy changes.
Regarding the burgeoning Chinese EV market, Muñoz revealed plans to launch an EV specifically designed for China in the near future, marking Hyundai’s first EV exclusively for the Chinese market.
This year, Hyundai plans to release 10 new models, including the ‘Palisade Hybrid,’ its first vehicle equipped with dual motors. Muñoz stated that while leading the transition to EVs, Hyundai continues to invest in hybrid vehicles, extended-range EVs, and hydrogen fuel cell vehicles to meet diverse consumer demands.
The company aims to consistently provide excellent products with desired technologies and superior purchasing experiences. Notably, Hyundai began selling cars on Amazon in the U.S. late last year, becoming the first automaker to do so, and plans to involve more dealers in this program.
To navigate global market uncertainties, Hyundai is expanding collaborations with foreign companies.The company agreed to supply its EV ‘Ioniq 5’ for Waymo’s autonomous robotaxi service and is partnering with General Motors (GM) on vehicle technology development and production. Muñoz emphasized that through global partnerships and close cooperation with affiliates, Hyundai plans to reduce costs in areas such as logistics and finance.
