Seoul based Automotive manufacturer Hyundai Motor Company announced “Strategy 2025” a roadmap to secure its position as a leader in the Smart Mobility industry. As per the new roadmap, Hyundai Motor transition into Smart Mobility Solution Provider by 2025 with two core business pillars Smart Mobility Device and Smart Mobility Service.
The Smart Mobility Device pillar will supply a wide range of product to optimize the services to expand beyond automobiles like Personal Air Vehicle (PAV), robotics, last-mile mobility. The company will focus on its manufacturing capabilities that offer customers a seamless mobility experience. The company is also planning to develop Urban Air Mobility (UAM) platform business by combining Personal Air Vehicle (PAV) and mobility services.
The other pillar of “Strategy 2025” is Smart Mobility Service business. The company will offer personalized services and content on an integrated platform to maximize value for customers. Smart Mobility Service is a new business area for company and will be fostered as a key strategic pillar for future businesses.
The two pillars of the Strategy 2025 sit atop three key directions that Hyundai Motor has defined: enhancing profitability in internal combustion engine (ICE) vehicles, securing leadership in vehicle electrification, and laying the groundwork for platform-based businesses. The company aims to secure leadership in electrification by selling 670,000 electric vehicles annually and become one of the top three manufacturers of battery and fuel cell EVs by 2025.
In the Smart Mobility Device of Strategy 2025, the company has set out strategies to maintain its competitiveness in the core manufacturing business by bolstering profitability in ICE vehicles and securing leadership in electrification. The company will address vehicle electrification by first targeting younger demographics and enterprise customers with affordable battery electric vehicles (BEVs) to achieve economies of scale. The main objective of Hyundai is to electrify most new models by 2030 in key markets such as Korea, US, China, and Europe, with emerging markets such as India and Brazil the following suit by 2035. Along with electrification, the company will also implement quality and cost innovations to enhance customer value while innovating cost structures.
Future growth of Hyundai will depend on Smart Mobility Service, the second pillar of Strategy 2025. Smart Mobility Service brings devices and service together to offer customers a personalized mobility lifestyle. The company plans to provide services linked to vehicles, including maintenance, repair, financing, insurance, and charging. Hyundai will also make efforts to reach a wider group of customers with a more broad range of services. It will build an integrated mobility platform that analyzes data around the vehicle of the customer through car connectivity. The company will also offer tailored services to customers in every aspect of their lives, including shopping, delivery, streaming, and multi-modal mobility services.
Strategy 2025 also provides details of regional optimization for Smart Mobility Service. In the USA, car sharing and robotaxi service will capitalize. In Korea, Asia, and Australia, the company plans to enter the mobility service market by joining with local leaders.
South Korea based Hyundai Motor Company is a leading manufacturer, seller, and exporter of passenger cars, trucks, and other commercial vehicles. The company also deals in auto parts and railways manufacturing. Hyundai is also involved in financing, leasing, and credit cards through its subsidiaries.
Hyundai Motor Group is an international organization that has formed a value chain based on automobiles, steel, and construction and includes logistics, finance, IT, and service. The group’s auto brands include Hyundai Motor Co. and Kia Motors Corp and Genesis. The organization has almost 250,000 employees in around 200 countries of the world.