SEOUL: Hyundai Motor has set an ambitious target of achieving 5.55 million global vehicle sales annually by 2030, representing a 30% increase from 2023. To counter the slowing demand for electric vehicles (EVs), the automaker plans to double its hybrid vehicle lineup from seven to 14 models, with a particular focus on the North American market.
At an investor day on Wednesday, Hyundai, the world’s third-largest automaker by sales alongside its affiliate Kia Corp, also announced plans to repurchase up to 4 trillion won ($2.99 billion) of its own stock between 2025 and 2027, alongside a significant boost to its dividends. This new shareholder return policy was better than expected, leading to a 5% surge in Hyundai’s stock price, which closed up 4.7%.
Hyundai President and CEO Jaehoon Chang highlighted the growing importance of hybrid vehicles, noting that the demand for hybrids is rising as the transition to EVs slows. He emphasized that hybrids are now seen as a standard option rather than just an alternative to internal combustion engines.
Hyundai also announced plans to introduce extended-range electric vehicle (EREV) models in North America and China, with mass production expected by the end of 2026.
As global EV demand slows, Hyundai, like its rivals Ford and Toyota, is shifting focus towards hybrid vehicles. The company revealed plans to produce hybrid vehicles at its new factory in Georgia, USA, alongside EVs. Hyundai also noted that the profitability of its hybrid models is comparable to that of gasoline-powered cars.
In response to the changing market dynamics, Hyundai also plans to pay quarterly dividends of 2,500 won per share from 2025 to 2027, a 25% increase from previous levels. Additionally, the automaker announced the commercialization of an autonomous driving vehicle foundry business, which will sell autonomous vehicles to various global software companies.
