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Hyundai Motor Company has unveiled an ambitious plan that aims to double its lineup of hybrid cars and increase sales by 30% by 2030. The announcement is an encouraging sign for investors, especially when demand for pure electric vehicles has declined.
At an investor day held in Seoul on Wednesday, Hyundai announced its strategic shift. The company plans to increase the number of its hybrid cars to 14, which will include new compact and mid-size cars as well as large and luxury vehicles. However, its current target for EV sales has been kept unchanged at 2 million per year by 2030.
Hyundai shares saw a jump of 5.5% due to this new plan, and it closed 4.7%. Investors welcomed the share buyback plan and the company's commitment to pay a minimum dividend of 10,000 won per share from 2025 to 2027.
James Hong, an analyst at Macquarie Securities Korea Ltd., described the buyback plan as an important sign of investors' main interest. He said the plan is more impressive than expected and its size is also larger than expectations.
Speeding up the production of hybrids is an important move by Hyundai amid a global slowdown in EV demand. Recently, major automobile companies such as Ford, Porsche, and Mercedes-Benz have scaled back their EV plans, while Tesla's sales are also far behind the previous pace.
Hyundai CEO Jaehoon Chang said, "We must continue to move towards EVs, but it is also important to solve range concerns with improved charging infrastructure and better technology."
To address range concerns, Hyundai will introduce a new extended-range EV in North America and China. The vehicle will have a small gasoline engine that will keep the onboard battery charged and will be able to travel more than 900 kilometers (560 miles) on a single charge.
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Chang stressed that "Although the rate of electrification is slowing down, we cannot ignore the declining sales of EVs given environmental regulations. Extended-range EVs can address concerns related to charging."
Hyundai expects a potential increase in EV demand in the future and aims to increase its offering of hybrid and extended-range EVs. The company believes that EV demand is likely to improve by 2030.
Meanwhile, Hyundai is benefiting from strong sales of its hybrid cars. In the second quarter, hybrid sales made up about 12% of total vehicle sales, pushing the company's profit to a record level.
Additionally, Hyundai plans to produce hybrids at a new EV plant in Georgia, US. The plant is expected to start hybrid production in the first quarter of 2026 and will have one-third of the total production capacity.
However, the construction of the Georgia plant has faced some hurdles, as the US federal government may now reevaluate its environmental permit. Nevertheless, Hyundai plans to invest 121 trillion won over the next decade to expand production and advance in new technology areas.
Thus, Hyundai's new strategy and plans announced to investors have given positive signals about the company's future, which is expected to strengthen its position in the industry.
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