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.
Hyundai Ioniq 5 debuts today: Watch the livestream world premiere here!
The IONIQ 5 world premiere livestream will start on 23/2/21 at 6:00PM AEST, 8:00AM CEST and on 22/2/21 at 11:00PM PT
We’ve covered Hyunidai’s IONIQ 5 rather frequently, as this new electric vehicle based on the E-GMP platform is set to be an important vehicle for the South Korean automaker.
The IONIQ 5 world premiere livestream will start on 23/2/21 at 6:00PM AEST, 8:00AM CEST and on 22/2/21 at 11:00PM PT
We’ve covered Hyunidai’s IONIQ 5 rather frequently, as this new electric vehicle based on the E-GMP platform is set to be an important vehicle for the South Korean automaker.
The IONIQ 5 is expected to feature a 450 kilometre (280 mile) WLTP rated range from a 58kW hour battery, with an option for a 73kWh battery with a 550 kilometre (340 mile) range. With two motors, the all-wheel drive setup should scoot the IONIQ 5 to 100km/h (62mph) in 5.2 seconds courtesy of 230kW (313 PS) between the wheels.
Twitter has already allegedly sprung the final exterior design on the IONIQ 5, with users @macheauto and @seb68 sharing what look to be a number of press images in the below thread:
Final prototypes have been spotted out gathering data in Australian cities over the last couple of months, and it’s expected that Australia will be an important market for Hyundai’s new IONIQ brand, as well as for its new Kona Electric which is set to launch in March 2021.
Hyundai is promising ideal weight distribution, a modular flexible interior and V2X functionality, with the ability to power computers, tools or camping equipment from build in power outlets.
We’re genuinely big fans of the IONIQ 5’s sharp design, and if the Kona Electric is anything to go by, Hyundai will continue to improve its EV offerings with the IONIQ 5 by increasing battery range, refinement, energy efficiency and luxury.
