Hyundai confirms mid- to long-term EV strategy, highlights future model line-up

The IONIQ 5 is Hyundai’s first dedicated EV. Image: Hyundai UK

• 12+ models based on E-GMP platform across Genesis and Hyundai brands by 2025;

• 160,000 sales units by 2021, 560,000 sales units by 2025;

• IONIQ 6 to launch in 2022 along with Genesis’s first dedicated EV

• Plans to strengthen Hyundai’s core EV competitiveness through driving range improvements, V2X, fast-charging;

• Enhanced product value through optimising cost and performance of batteries and motors;

• Plans to secure market leadership in emerging markets such as Indonesia

Hyundai Motor Company recently outlined their Mid-to long-term EV Strategy alongside announcing the company’s first-quarter business results in a presentation to investors and analysts. We break down some of the key points:

1. Global EV Demand Outlook

Hyundai looks at General Motors and Volkswagen as key competitors in the global EV market, and sees analysts’ demand outlooks ranging from 6.1 to 16 million sales units by 2025. 2020 saw 3.24 million sales globally, up 43 percent on 2019 sales, so the real 2025 figure is likely to fall somewhere in the middle of this range.

Global OEMs are targeting 5 to 8 million EV sales units by 2022, and 10.25 to 18 million sales units by 2025. General Motors plans 30 electrified models by 2025, as it rolls out new models utilising its Ultium pouch-style battery — a joint venture project with LG Chem — underpinned by its modular electric architecture.

Volkswagen is looking to Europe and China for EV growth, targeting 70 percent of its model mix to be electrified by 2030 in both markets.

Hyundai’s take on global EV demand. Images: Hyundai Motor Company

2. Hyundai’s Electrification Strategy

From a base of 100,000 sales units in 2020 spread across four models, Hyundai is looking to achieve 5x growth by 2025 to 560,000 sales units across 12 models. These will likely be a combination of fully electric and plug-in hybrid.

Hyundai’s new model offensive starts with the upcoming IONIQ 5, and the company is aiming to capture an early majority of buyers through the key brand concepts of advanced technology, and a new user experience.

The IONIQ range will expand in 2022, with the release of the IONIQ 6 sedan which will take design inspiration from the Prophecy Concept.

The Genesis luxury brand will play a key role in achieving Hyundai Motor Company’s EV sales ambitions. Genesis has worked hard over the last 2 years to build brand awareness and emphasise its focus on design and advanced technology through its petrol and diesel-based vehicles, but the brand is getting ready to present its Electrified G80 later in 2021, followed by its first dedicated EV in either late 2021 or early 2022 according to the below timeline.

Hyundai plans to grow its EV lineup to 12 models by 2025.

3. Building on USP’s to strengthen core EV competitiveness

Hyundai understands that while the EV market is set to grow considerably this decade, competition from other OEMs will also increase. Chinese EV manufacturers are eyeing the profitable luxury EV market and can compete with Hyundai or Tesla on software and technology. Hyundai will seek to strengthen its core competitiveness from what it sees as its three core USPs; Driving range, Charging time, and vehicle-to-everything (V2X) technology.

Hyundai flags 2023 as the date for its fourth generation of battery systems to emerge, and it sees 2027 as the time to prepare for the mass production of solid-state battery technology. The company also looks to lead in high-speed ultra-rapid charging, rolling out its E-Pit charging stations across South Korea.

Hyundai has led in V2X technology, and the IONIQ 5 is the first production car that can power domestic appliances via the charging port, or that can be optioned with a household power socket in the vehicle’s interior. The IONIQ 5 also offers Vehicle to Home and Vehicle to Vehicle power, allowing customers to charge another EV, or power items in a home should a blackout occur.

Range, Charging Time and flexible power are hallmarks of Hyundai’s core USPs.

4. EV Competency Enhancement Strategy

Hyundai understands that to prepare for the predicted uptick in BEV sales units, it has to secure the competitiveness of key components, and enhance the value of its products.

Firstly, the company is looking to maximize the benefits of commonization across models; it has done this with the E-GMP electric architecture and plans to standardise cell/module design, taking into account a future expanded model line-up. Hyundai also recognises the importance of reliable charging for consumers, in standardising EV charging quality and providing reliable high-speed charging options when customers are away from home.

Hyundai’s IONIQ 5. Image: Hyundai UK

All this investment needs some serious pay-offs, and Hyundai — like most auto manufacturers — spends a lot of time formulating go-to-market strategies that can respond to changing trends in demand growth and shifting government policy. Europe and China have been strong markets for EV manufacturers since announcing strict emissions regulations and net-zero targets, however, these markets are crowded, and in the case of China, full of domestic players.

As the slide below outlines, Hyundai is looking to nations without rapid charging networks or even reliable electricity grids as an opportunity to secure market leadership in electric vehicle sales. India and Indonesia both have huge populations and a rapidly growing middle class with aspirations for vehicle ownership.

Electric vehicle sales account for only 0.2 percent of the market in India, and in Indonesia, a key Association of South East Asian Nations (ASEAN) region for automotive sales volume, just 29 (!) electric passenger cars were sold in 2019. Both countries see that the electrification of passenger vehicles, trucks, and bikes has real benefits in terms of reducing pollution and emissions, and are beginning to draft policy frameworks to set up charging networks, and provision incentives for consumers looking to purchase an EV. Hyundai is looking to position itself early on as an aspirational, ‘clean’ brand to consumers in these countries, and optimise the development, component supply chain and local partnerships to capture market share.

Hyundai looks to emerging markets in South East Asia for growth.

Polestar confirms entry into Australian and key Asian markets by end of 2021

Polestar expands into five new markets in 2021 including Australia and New Zealand

• Polestar to add five new markets across Asia Pacific

• Polestar 2 will be available in 18 markets across Europe, North America and Asia Pacific by end of 2021, including Australia, New Zealand and Singapore

Polestar has today announced the expansion of its global footprint in 2021 with the addition of five new markets in the Asia Pacific region. These markets will join three new and previously announced European markets, bringing Polestar’s global footprint to 18 countries by the end of the year. The new markets include South Korea, Singapore, Hong Kong, Australia and New Zealand.

“The brand is gathering real momentum, and it is great to be expanding with Polestar 2 beyond our initial global markets in China, North America and Europe,” says Thomas Ingenlath, CEO of Polestar. 

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Preparations in these markets are at different stages as the brand organises market launches and eventually the opening of online sales. Specific dates and details for each market will be published locally to include model specification and product pricing.

Key for Australia and South Korea, local independent Polestar sales units are being established and new Managing Directors have already been appointed. In Australia the local organisation will be led by Samantha Johnson, and Jongsung Ham will head up Polestar in South Korea. The other markets will likely be operated on an importer basis, with local partners to be confirmed in due course.

According to Nathan Forshaw, Polestar’s new head of the China and Asia Pacific regions, “specific roll-out timing is at an advanced planning stage and the recruitment of key individuals has begun.” He adds “While we are growing rapidly, we are ensuring both our organisation and processes ensure a consistent and truly Polestar experience for our customers, wherever they are based.”

Polestar has already had a presence in Europe and North America since launch in 2020, and retails the Polestar 2 through its website and its “Spaces”; a term for centrally located design-focused showrooms in the style of Tesla stores.