Hyundai plans for double-digit profit margins via new EV platform, next-gen batteries
The Hyundai Motor Group revealed during its 2023 annual investor day on Tuesday that it would accelerate its transition to electric cars. With an injection of new funds dedicated to EV and battery development, Hyundai is raising its annual EV sales goal to two million by 2030, aiming for over 10% profit margins.
Including Kia and Genesis, the Hyundai Motor Group is transforming its identity in the new era of electric vehicles.
Hyundai’s first dedicated EV, the IONIQ 5 electric SUV, has been a success for the South Korean automaker so far, attracting a new premium market. Its second dedicated EV, the IONIQ 6 electric sedan, is gaining attention as one of the market’s most aerodynamic and fuel-efficient electric cars.
Kia is breaking its image of being a “cheap brand” with its first dedicated electric model, the EV6, and plans to capitalize on the momentum by releasing its first three-row electric SUV, the EV9.
Much of the brand’s success is credited to its dedicated E-GMP platform, the power behind each of the EVs listed above.
With competition in the EV market heating up, Hyundai has revealed new plans to maintain its competitiveness and drive profitability as it moves to become a sustainable mobility leader.
Hyundai’s blueprint includes a new EV platform, next-gen batteries, shifting production capacity from ICE vehicles, and new businesses to drive software innovation.
Hyundai boosts EV investment, plans new platform
Hyundai says it’s leveraging the position it has established over time “amidst a seismic change in the industry” with competition intensifying in the EV market.
To secure its position, the South Korean automaker revealed it would invest KRW 109.4 trillion ($85 billion) over the next decade, including KRW 35.9 trillion ($27.8 billion) toward EVs.
The investment will help Hyundai reach its new target of selling two million EVs annually by 2030, up from 1.87 million. Hyundai says its next-gen EV platform, production capabilities, battery development, and future businesses will be key in reaching its targets.
Hyundai president and CEO, Jae Hoon Chang, commented on the company’s new investment and strategy, saying:
The value of cultivating human-centered innovation by further developing technology inherited from the past is the distinct heritage that a company with a rich legacy can provide. As it originated from Pony, the IONIQ 5 N—a high-performance EV scheduled for unveiling in July—will embrace and carry forward the enduring heritage of Hyundai Motor Company
Chang explained how Hyundai’s new dedicated EV platform, the Integrated Modular Architecture (IMA), will replace the E-GMP in future models.
The IMA platform will power 13 new dedicated EV models from Hyundai, Kia, and Genesis brands through 2030. Hyundai expects to standardize parts between models to streamline production and reduce costs.
With the new platform and streamlined production, Hyundai is targeting over 10% profitability for its EV models in 2030.
Hyundai says the IMA vehicle development system offers a “significant advancement compared to the current system enabling maximum cost reduction through economies of scale.”
The IMA platform will offer over 80 common modules that can be utilized across several segments, allowing for greater flexibility and efficiency.
According to Hyundai, the next-gen platform will extend beyond mid-size SUVs currently offered by the E-GMP. Instead, it will support vehicles from all segments, including small and large SUVs to pickups and other flagship models from Genesis.
Battery development plans
Hyundai is investing KRW 9.5 trillion ($7.3B) over the next ten years to improve battery performance and competitiveness in the battery tech.
The company says its new EV platform will include next-gen NCM and LFP batteries to improve driving range and reduce costs. Hyundai says it has formed a dedicated organization for each function required for battery development as it aims to become a market leader.
Hyundai is collaborating with external partners to establish a secure supply chain and accelerate the development of next-gen batteries.
As for solid-state batteries, Hyundai is partnering with companies like Solid Power to secure materials and manufacturing process technologies to develop lithium metal batteries.
The move comes after Toyota also revealed it was developing a range of new EV batteries, including sold state to boost competitivness.
Hyundai says it will introduce competitive LFP batteries with increased energy density and improved low-temp efficiency for the first time around 2025.
The company also outlined plans to focus on autonomous driving, software, robotics, and advanced air mobility. 42dot, a company Hyundai acquired in August 2022, will start developing its own software platform called Tital by 2024. The idea is to launch an autonomous driving purpose-built vehicle (PBV) business after 2027 with the goal of turning a profit after 2028.
In response to a diminishing presence in China, Hyundai will halt production at another plant while expanding local production of EVs and localizing parts.
In the US, Hyundai will begin production at its first EV plant in Georgia later this year to take advantage of the tax credit provided by the Inflation Reduction Act.
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Paris’ bike-share system, Vélib has long been considered one of the shining success stories of urban micromobility. With a massive fleet of over 20,000 pedal and electric-assist bicycles around Paris, the service has helped millions of residents and tourists get around the City of Light without needing a car or scooter. But lately, a growing problem is threatening to knock the wheels off this urban mobility marvel: theft and joyriding.
According to city officials and the service operator, more than 600 Vélib bikes are now going missing every single week. That’s over 30 bikes a day simply vanishing from the system – some stolen outright, others taken on “joy rides” and never returned.
“At the moment we’re missing 3,000 bikes,” explained Sylvain Raifaud, head of the Agemob company that currently operates the Velib system. That’s nearly 15% of over 20,000 Vélib bikes across Paris.
The sticky-fingered culprits aren’t necessarily professional thieves or organized crime rings. Instead, they’re often regular users who treat the shared bikes like disposable toys.
The city estimates that many people have figured out how to pry the bikes out of the system’s parking docks, unlocking one for a casual cruise and then ditching it somewhere far from a docking station.
Once pried free, the bikes are technically usable for the next 24 hours until their automatic locking feature kicks in. At that point, the bikes are often simply abandoned. Some end up in alleyways. Others get tossed in rivers. A few just disappear completely.
And since the bikes are intended to be parked at their many docking stations around the city, they don’t have GPS chips, further complicating recovery of “liberated” bikes.
The issue started small but has grown into more than an inconvenience – it’s beginning to undermine the entire purpose of the service. With bikes going missing at such a high rate, many Vélib docking stations are left empty, especially during rush hours.
Riders looking for a quick commute or a convenient hop across town are increasingly finding themselves without available bikes, or having to walk long distances to find a functioning one.
That kind of unreliability chips away at user confidence and threatens to drive potential riders back into cars, cabs, or other less sustainable forms of transport at a time when Paris has already made great strides to dramatically reduce car usage in the city.
The losses are financially painful, too. Replacing stolen or vandalized bikes isn’t cheap, and the resources spent on tracking down missing equipment or reinforcing anti-theft measures are stretching thin. Vélib has faced theft and vandalism issues before, especially during its early years, but this latest surge has officials sounding the alarm with renewed urgency.
Officials acknowledge that there’s no easy fix. Paris, like many cities with bike-share systems, walks a fine line between accessibility and accountability. Part of what makes Vélib so successful is its ease of use and widespread availability. But those same features make it vulnerable to misuse – especially when enforcement is limited and the consequences for abuse are minimal.
The timing of the problem is especially unfortunate. In recent years, Paris has seen impressive results in reducing car traffic, expanding bike lanes, and promoting cycling as a key part of its sustainable transport strategy. Vélib is a cornerstone of that plan. But if the system becomes too unreliable, it risks losing the very people it was designed to serve.
Meanwhile, as Parisians increasingly find themselves staring at empty docks, the challenge for the city and Vélib will be to restore confidence in the system without making it harder to use. That means striking the right balance between freedom and responsibility, between open access and protection against abuse.
In a city where cycling is supposed to be the future of mobility, losing thousands of bikes to joyriders and sticky fingers isn’t just frustrating; it’s unsustainable.
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