Hyundai confirms mid- to long-term EV strategy, highlights future model line-up
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.
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:
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.
Electric Chevy Silverado pickup gets green light, will be manufactured in Detroit
In a move set to anger coal-rolling pickup drivers yet guarantee the future viability of Chevrolet, the company has announced that a fully electric version of it’s popular Silverado pickup truck will be manufactured at it’s Factory Zero electric vehicle only manufacturing site in Detroit and Hamtramck.
In a move set to anger coal-rolling pickup drivers yet guarantee the future viability of Chevrolet, the company has announced that a fully electric version of it’s popular Silverado pickup truck will be manufactured at it’s Factory Zero electric vehicle only manufacturing site in Detroit and Hamtramck.
The fact that General Motors (GM) is going electric not only signifies GM’s commitment to electrification, but represents a significant future shift in the market. The Chevrolet Silverado is the second most popular new and used vehicle in the United States, selling close to 600,000 new units in 2020.
The Chevrolet Silverado electric will be a full-size pickup based on the company’s Ultium EV architecture, and according to GM will travel more than 400 miles (642 kilometres) on a full charge. General motors has committed billions not only to the new Factory Zero site, but also to electrifying its entire model line up, and its Ultium Cells joint venture with LG Chem LLC.
A release date for the Silverado electric is not yet known, but GM president Mark Reuss said at an event on Tuesday this week that the company will also make fleet-focused versions of the truck for commercial customers.
The current 2021 Chevrolet Silverado. Image: General Motors
Ultium Cells completes construction milestone at Ohio factory
Ultium Cells LLC, a joint venture between General Motors and LG Chem, aims to mass-produce Ultium battery cells at this new Ohio facility for General Motors’ next generation zero-emissions vehicles. GM and LG Chem are investing $2.3 billion in the facility to support EV manufacturing in the U.S., and in turn, local jobs, education, career training and infrastructure.
Ultium Cells factory under construction as GM nears 2022 launch date for next generation EV products
Ultium Cells LLC, a joint venture between General Motors and LG Chem, aims to mass-produce Ultium battery cells at a new Lordstown Ohio facility for General Motors’ next generation electric vehicles. General Motors and LG Chem are investing $2.3 billion in the facility to support EV manufacturing in the U.S., and in turn, local jobs, education, career training and infrastructure.
Working with LG Chem and General Motors, Ultium’s cells are of the large-format pouch design, and contain either vertically- or horizontally-stacked cells to integrate into GM’s upcoming modular EV platform – vertically for trucks, SUVs and crossovers, or horizontally for cars and performance vehicles.
Cadillac’s Lyriq is expected to debut GM’s new modular EV platform.
GM claims the batteries are able to be programmed digitally, as new chemistry is developed and becomes available, the battery management system could be upgraded digitally, similar to what Tesla already does with its over-the-air updates.
These high-capacity battery cells will also be switching to a Nickel Cobalt Manganese Aluminium chemistry, which reportedly uses 70% less cobalt than current technology.
The drive unit placement is also flexible, enabling front-, rear- and all-wheel drive variations. The motors were designed in-house at GM, and the modular platform is the first of its kind to support both front- and rear-wheel drive variants.
Ironworkers at Ultium Cells LLC’s battery cell manufacturing facility marked a construction milestone today with the final beam installation at what will soon be a 2.8-million-square-foot (260,000 square metre) operation in Lordstown, Ohio.
The team hoisted and installed the final beam as part of a traditional “topping out” ceremony, where leadership and trade partner employees had the opportunity to sign the beam and participate in a photograph.
Ultium Cells’ Ohio factory has topped out. Image: GM
Over 500,000 hours have been devoted to development of the facility, which is set to be completed in 2022. The framework of the building allows for an open floor plan, and the plant will equal the size of 30 football fields with an annual capacity of over 30 gigawatt hours of battery production, with room to expand.
“We are pleased construction at Ultium continues to progress safely and on schedule,” said Kee Eun, president of Ultium Cells LLC. “While we faced unprecedented challenges from the very beginning due to the COVID-19 pandemic, we have been able to execute successfully according to plan thanks to the collaborative efforts between General Motors and LG Chem, as well as the support and commitment from our contract partners and the local community.”
Ultium Cells is planning to create more than 1,100 new jobs in Northeast Ohio and is hiring to fill those positions currently.
Cadillac’s flagship Lyriq will likely be the first GM model to hit the market utilising Ultium Cells and GM’s new modular platform in the first quarter of 2022.
GM’s modular EV platform: Image: General Motors
