With the aim to transition into a Smart Mobility Solution Provider, Hyundai Motor Company recently announced the new roadmap, named Strategy 2025. Under this new roadmap the company will work to foster Smart Mobility Device and Smart Mobility Service as two core business pillars and create synergy between the two pillars.
The Smart Mobility Device business will supply products optimized for the services and lay the groundwork to help foster the service business. On the other hand, the Smart Mobility Service business will provide personalized contents and services on the devices to help secure a broader customer base.
• Hyundai to transition into Smart Mobility Solution Provider by 2025 with two pillars
– Smart Mobility Device will expand beyond automobiles to include Personal Air Vehicle (PAV), robotics, last-mile mobility
– Smart Mobility Service will offer personalized services and contents on integrated platform
• Hyundai announces a set of strategic goals
– achieve balanced and steady growth
– boost profitability with enhanced customer value and cost structure innovations
– sell 670,000 BEVs and FCEVs annually; become top three EV manufacturer by 2025
– offer most new models with EV drivetrain by 2030 in major markets, 2035 in emerging markets
• Hyundai identifies financial targets
– Invest KRW 61.1 trillion into R&D and future technologies through 2025
– Target operating margin of 8% in automotive business, 5% market share by 2025
– Buy back KRW 300 billion shares from market through February 2020
The company’s plans for Smart Mobility Device include a wide range of product groups beyond automobiles such as Personal Air Vehicle (PAV), robotics, and last-mile mobility. Hyundai will reinforce its manufacturing capabilities to build products that offer customers a seamless mobility experience.
Smart Mobility Service is a new area of business for Hyundai that will be fostered as a key strategic pillar for future businesses. Services and contents will be personalized and offered through an integrated platform to maximize value for customers.
The two pillars sit atop three key directions that the company has defined: enhancing profitability in internal combustion engine (ICE) vehicles, securing leadership in vehicle electrification, and laying the groundwork for platform-based businesses.
To materialize Strategy 2025 on the Device side, Hyundai will aim for growth that is balanced and steady, seeking balance between markets as well as models while prioritizing long-term sustainability over short-term targets. The company also plans to boost profitability by simultaneously pursuing enhanced value for customers and innovations in cost structures.
In particular, Hyundai aims to secure leadership in electrification by selling 670,000 electric vehicles annually and become one of the world’s top three manufacturers of battery and fuel cell EVs by 2025.
On the Smart Mobility Service side, the company will aim for a business model that combines product and service and launch an integrated mobility platform to offer customers personalized contents and services.
To this end, Hyundai will earmark KRW 61.1 trillion of investment until 2025 for research and development (R&D) and further exploration of future technologies. In the same timeframe, the company will target an operating margin of 8 percent in its automotive business and aim for a 5 percent share of the global vehicle market.
Separately, Hyundai announced plans to conduct a KRW 300 billion share buyback by February 2020 as part of its continuous efforts to boost shareholder and stakeholder value and enhance transparent communication with the market.
Source: Press Release