South Korean automotive giant Hyundai Motor Company on Wednesday announced it aims to electrify most of its new models in emerging markets like India by 2035.
Announcing its 'Strategy 2025' global roadmap to morph into a smart mobility solutions provider, Hyundai also said it would invest a total of KRW 61.1 trillion between 2020-2025 in research and development (R&D) and future core technologies.
According to Hyundai, it will first address vehicle electrification by targeting younger demographics and enterprise customers with affordable battery electric vehicles (BEVs) to achieve economies of scale.
The company said electrification of most of its models in markets like India and Brazil will be done by 2035 after the doing the same in key markets ilike Korea, US, China and Europe.
"By 2025, the company aims to sell 670,000 electric vehicles annually, comprising 560,000 BEVs and 110,000 fuel-cell electric vehicles (FCEVs)," the company said.
Out of the total investment plan, KRW 41.1 trillion will be allocated for product and capex to enhance competitiveness in existing businesses, while approximately KRW 20 trillion will be dedicated to future technologies, including electrification, autonomous driving, artificial intelligence (AI) robotics, personal air vehicle (PAV) and new energy area, the company said in a statement.
For Hyundai, India is a major manufacturing base with a capacity to roll out about 700,000 units per year from its two plants near here.
Besides, group company Kia Motors has its plant in Andhra Pradesh.
In March 2019, both Hyundai Motor India and Kia Motors announced an investment of $300 million in ride sharing group Ola.
As per the agreement, the three will collaborate on building India-specific electric vehicles and infrastructure, and developing unique fleet and mobility solutions, Hyundai Motor had then said.
For cost innovation, the company will adopt a new global modular electric vehicle (EV) architecture to enhance efficiency and scalability of product development, starting with vehicles being launched in 2024.
The company also has plans to revamp its sales model through network optimization and new sales methods, to optimize production based on demand, and to expand partnerships with other original equipment manufacturers (OEM).
According to Hyundai, under `Strategy 2025', the company will foster Smart Mobility Device and Smart Mobility Service as two core business pillars, and the synergy between the two pillars is expected to facilitate the company's transition into a smart mobility solutions provider.
The Smart Mobility Device business will supply products optimised for the services and lay the groundwork to help foster the service business. On the other hand, the Smart Mobility Service business will provide personalised contents and services on the devices to help secure a broader customer base.
Hyundai's plans for Smart Mobility Device include a wide range of product groups beyond automobiles such as Personal Air Vehicle (PAV), robotics, and last-mile mobility. Hyundai will reinforce its manufacturing capabilities to build products that offer customers a seamless mobility experience.
Smart Mobility Service is a new area of business for Hyundai that will be fostered as a key strategic pillar for future businesses. Services and contents will be personalized and offered through an integrated platform to maximize value for customers.
The two pillars sit atop three key directions that the company has defined - enhancing profitability in internal combustion engine vehicles, securing leadership in vehicle electrification, and laying the groundwork for platform-based businesses.