Hyundai Motor said Wednesday it plans to invest 61.1 trillion won ($51 billion) in research and development and future technology by 2025, with the aim of transforming into a smart mobility solution provider.
Under the Strategy 2025 road map, the automaker will foster smart mobility devices and smart mobility services as the two main pillars of its business.
“The key to our future strategy is to focus on customers and to present the most desirable products and services. We want to offer smart mobility experiences that meet shifting needs of our customers by leveraging advanced technology,” said Hyundai Motor CEO Lee Won-hee during the CEO Investor Day forum on Wednesday.
The event, which took place in Yeouido, Seoul, was attended by stakeholders.
Hyundai Motor CEO Lee Won-hee speaks during the CEO Investor Day forum, which invited stakeholders and took place in Yeouido, Seoul, Wednesday. (Hyundai Motor Group)
“Transforming into a smart mobility solution provider with comprehensive mobility solutions that combine devices and services will be the centerpiece of Hyundai’s future strategy,” said Lee.
With the 61.1 trillion won injection in the next five years, Hyundai Motor aims to secure an operating margin of 8 percent in its automotive business and 5 percent of market share in the global vehicle market.
The company also announced its plans to buy back 300 billion won worth of shares by February 2020, to boost shareholder and stakeholder value.
As for smart mobility devices, the automaker intends to develop products beyond automobiles, such as personal air vehicles, robotics and last-mile mobility, to create an urban air mobility platform.
According to the company, smart mobility services are a new area of business that the automaker will foster as its key business. It aims to launch an integrated mobility platform offering customers personalized content and services.
Hyundai Motor added that by 2025, it will target to sell 670,000 electric vehicles annually, comprising 560,000 battery-powered electric vehicles and 110,000 fuel cell electric vehicles.
Its goal is to electrify most of the new models in its vehicle lineup sold in key markets including Korea, the US, China and Europe by 2030, and in emerging markets like India and Brazil by 2035.
By Kim Da-sol (firstname.lastname@example.org