Hyundai Motor lays out ambitious goals for sales, shareholder returns

28th Aug 2024 11:24

(Sharecast News) - Hyundai Motor announced ambitious plans to increase its annual global sales by 30% to 5.55 million vehicles by 2030 on Wednesday, with a significant focus on expanding its hybrid vehicle lineup.

The South Korean carmaker revealed the strategy during an investor day presentation, as part of a response to the slowing demand for electric vehicles (EVs) worldwide.

Hyundai said it planned to double its hybrid models to 14 by 2028, projecting hybrid sales of 1.33 million units by that year - a 40% increase from earlier targets.

In addition to expanding its hybrid lineup, Hyundai said it would explore the extended-range electric vehicle (EREV) segment - a relatively new market that Reuters said was gaining popularity in China, but remained underdeveloped globally.

EREVs, which operate primarily on electricity with a gasoline engine as a backup power source, are expected to offer a driving range of more than 560 miles when fully charged.

Hyundai said it aimed to begin mass production of EREVs in North America and China by the end of 2026, targeting significant sales in the regions.

The company's strategic shift also included financial incentives for shareholders, with plans to repurchase up to $3bn in shares between 2025 and 2027 and increase quarterly dividends by 25% during that period.

Its new shareholder return policy would return 35% of profits to shareholders.

The company's long-term strategy also involved maintaining its EV sales target of two million units by 2030, while improving profitability across its powertrain offerings.

Hyundai said it aimed to achieve a 9% to 10% operating margin by 2027, and over 10% by 2030, supporting its enhanced shareholder returns.

The firm was also preparing to offer its autonomous driving platforms and technology to other companies.

It also said it would soon update the market on the allocation of proceeds from its upcoming initial public offering (IPO) in India, which Reuters said was expected to raise between $2.5bn and $3bn.

Reporting by Josh White for Sharecast.com.