Hyundai Motor targets 30% rise in sales by 2030, a rise in hybrid models

Hyundai new sales target: Hyundai Motor said on Wednesday that the company had targeted annual global sales of 5.55 million vehicles by 2030. This target is up by 30 per cent from 2023, as the company has plans to double its hybrid lineup to counter a slowdown in the demand for electric vehicles globally.

The world's third largest auto manufacturer, Hyundai by sales along with affiliate Kia Corporation, also stated that it would buy back up to 4 trillion won ($2.99 billion) of stock between 2025 and 2027. This will boost its dividends particularly as the medium-to-long-term strategy was laid out at an investor day.

The shares of Hyundai surged 5 per cent after the announcement. Earlier the shares had traded flat beforehand, with analysts saying its new shareholder return policy was higher than anticipated.

The South Korean auto manufacturer anticipates a surge in demand for hybrid vehicles in North America. The company has planned to expand its hybrid lineup to 14 models from seven as it expected a surge in hybrid demand. However, the company did not provide a timeline for the release of the new cars.

A spokesperson from the company said, “It aimed to introduce extended-range electric vehicle (EREV) models in North America and China, and planned mass production of new EREVs in the regions by end-2026,”

Since there was a decline in the demand for EVs globally, Hyundai and other auto manufacturers are reworking their strategies.

Ford Motor and General Motors have delayed or cancelled the launch of new EVs to avoid spending heavily on models that consumers are not buying as quickly as anticipated.

Hyundai's shift toward hybrid vehicles, which combine an electric motor with a gasoline engine, is consistent with efforts by other auto competitors, such as Toyota and Ford.

The South Korean automaker has also stated the plan to produce hybrid vehicles at its new Georgia, US factory along with production of other EVs.

Last month Hyundai said that the profitability of its hybrid models was similar to that of gasoline cars. The company has also highlighted the segment's growing contribution to its bottom line. Its sales of pure EVs have dropped by nearly 25 per cent in the second quarter on a year-on-year basis.

The auto manufacturer said that it would seek to pay quarterly dividends of 2,500 won per share between 2025 to 2027, which is up by 25 per cent from previous levels.

The company has also announced the commercialisation of an autonomous driving vehicle, the foundry business that will be selling autonomous vehicles to various global software companies.

(with Reuters inputs)