Hyundai Motor’s Sales and Strategy Plans

By Heekyong Yang and Joyce Lee

SEOUL (Reuters) – Hyundai Motor announced plans to target annual global sales of 5.55 million vehicles by 2030, a 30% increase from 2023. The South Korean firm aims to double its hybrid lineup in response to a slowdown in global electric vehicle (EV) demand.

Additionally, Hyundai plans to buy back up to 4 trillion won ($3 billion) of stock between 2025 and 2027, and provide a minimum of 2,500 won per share in quarterly dividends, returning 35% of its profit to shareholders, raising the policy by 10 percentage points. Shares surged by 4.7% following the announcement.

Despite maintaining an EV sales target of 2 million units by 2030, Hyundai raised its hybrid sales goal by 40% to 1.33 million units by 2028. CEO Jaehoon Chang stated that the demand for hybrids was increasing, as their appeal shifted from being an alternative to a standard option.

Hyundai plans to expand its hybrid lineup to 14 models, anticipating increased demand, particularly in North America. Production of hybrid cars could begin at its new Georgia, U.S. plant in the first quarter of 2026, with about one third of its capacity dedicated to hybrids.

New Hybrid Models

Hyundai is focusing on hybrid vehicles, aligning with competitors Toyota and Ford, but also exploring the extended-range electric vehicle (EREV) segment, which is gaining traction in China. EREVs will use larger battery packs and incorporate gasoline engines to recharge batteries, targeting 900 km (559 miles) range.

Hyundai plans to begin mass production of EREV models in North America and China by the end of 2026, aiming for 30,000 sales in China and 80,000 in the U.S., starting with SUVs and luxury models.

The company will also offer autonomous driving technology to other manufacturers. Hyundai, which reported record quarterly profits recently, expects its shareholder return efforts to be supported by a targeted 9-10% operating margin by 2027, over 10% by 2030.

CFO Seung Jo Lee emphasized a profit-oriented strategy focusing on hybrids, EVs, and EREVs to improve profitability. Updates on the upcoming IPO for its India operations, targeting around $2.5-$3 billion, will be provided after its completion.

Note: $1 = 1,338.1300 won