Hyundai Motor, which owns brands such as Hyundai and Kia, announced on Wednesday that it would invest $52bn to achieve its goal of being a “leader in the travel industry of the future”. More specifically, the transformation from “car manufacturer” to “smart travel solution provider” will be achieved by 2025.
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According to a press release from Hyundai Motor, the $52 billion fund will drive the layout and development of two areas of travel, one in the traditional automotive sector and the other in flight cars (which Hyundai calls private air vehicles), robots and the last kilometer. Hyundai said it would combine existing products and services to facilitate the layout of the travel ecology for the next decade.
According to Hyundai’s six-year development plan, the target is to become the world’s top 3 EV manufacturers by the end of 2025, with an ANNUAL sales target of 670,000 units. By 2030, we will supply as many electric vehicles as possible to major markets such as South Korea, the United States, China and Europe, and supply them to developing markets such as India and Brazil by 2035.
The company also announced plans to increase operating margins to 8 per cent by 2025, compared with its previous target of 7 per cent by 2022. In addition, in February 2020, Hyundai plans to buy back about 300 billion won ($252 million) worth of shares. Against this backdrop, the company’s shares rose 2 percent.
According to MARKET research firm IHS Markit, Hyundai Motor/Kia’s 2019 H1 (January-June) EV sales reached 44,838 units, up 1.4 times (143 percent) from the same period last year, with Hyundai’s EV sales at 3,963 units and Kia’s at 13,975 units. In 2014 Hyundai/Kia ranked 15th in the global EV market with a market share rate of just 0.9%.
During h1 Hyundai/Kia’s sales market share in the global EV market rose to 6.5% from 4.1% in the same period last year, and the market position jumped to 5th place from 9th place in the same period last year. The top four EV plants in the world during H1 were Tesla, BYD, Renault/Nissan and SAIC.
Fuji Keizai, Japan’s municipal agency, said in a survey released on August 20th that the EV market is expected to surpass HV and become the dominant market for environmentally friendly vehicles in 2021, and that the EV global market will expand to 22.02 million units by 2035. That’s nearly 16 times higher than in 2018 (up 1,594 percent).