By Heesu Lee and Youkyung Lee | Bloomberg
Hyundai Motor Co. plans to double its lineup of hybrid cars as demand for pure electric vehicles slows, and announced a $3 billion share buyback as part of a plan to boost investor returns.
Unveiling a new strategy at its 2024 investor day Wednesday, the world’s third-biggest carmaker said it will increase the number of hybrids in its lineup to 14 — moving beyond compact and mid-size cars to add large and luxury vehicles. However, it kept its EV sales target unchanged at 2 million a year by 2030.
The move to accelerate the production of hybrids comes amid a broad slowdown in EV demand globally. Ford Motor Co., Porsche AG and Mercedes-Benz Group AG have all walked back their EV ambitions in recent months, while Tesla Inc. is well off the pace of 1.8 million cars sold last year.
“Ultimately, we think it’s the right move to maintain our path to EVs,” Hyundai Chief Executive Officer Jaehoon Chang said. “But we do need to improve charging infrastructure and ensure we tackle range issues with improved technology.”
To help combat range anxiety, Hyundai will release an extended-range EV — which uses a small gasoline engine to keep an on-board battery charged while driving — in North America and China. The car will be capable of traveling more than 900 kilometers (560 miles) on a single charge.
“While the rate of electrification is slowing, we’re still seeing stricter environmental regulations around automobiles, which means we can’t just sit and watch dwindling sales of EVs,” Chang said. “Extended-range EVs can tackle some of these issues, including consumers who are hesitant to purchase EVs because of their concerns over charging.”
Hyundai, with its US headquarters in Fountain Valley, also indicated it doesn’t see EV demand picking up again for several years.
“The company aims to address the EV deceleration by expanding its hybrid and new extended-range EV offerings and gradually increasing EV models by 2030, when a recovery in EV demand is expected,” its exchange statement said.
Meanwhile, Hyundai has been enjoying robust sales of hybrids, which accounted for around 12% of total vehicle sales in the second quarter, propelling profit to a record. The company plans to produce hybrids at an EV plant it’s building in Georgia in the US, Chang said.
The Georgia plant is likely to begin hybrid output in the first quarter of 2026 and hybrid production will be equal to around one-third of the facility’s total capacity, Hyundai said Wednesday. Construction of the $7.6 billion plant hit a snag earlier this week with news the US federal government may now reassess its environmental permit.
Among other initiatives announced at the investor day, Hyundai said it will spend 121 trillion won over the next decade to boost production and make progress in areas such as hydrogen cars, EV batteries and software for future mobility.
Related Articles
Why Tesla’s rivals still can’t use its Superchargers
Canada to hit China with tariffs on EVs, steel
Fiery Tesla Semi crash on California interstate draws NTSB probe
Can high-demand California and the US install enough EV chargers by 2030?
Red-state Republicans say they’ll defend Biden-era green jobs
