Hyundai Motor Company has unveiled its roadmap-Strategy 2025- to secure its position as a frontrunner in the future mobility industry. Under this, the company will foster Smart Mobility Device and Smart Mobility Service as two core business 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 personalised contents and services on the devices to help secure a broader customer base.
Hyundai’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. Smart Mobility Service is a new area of business for Hyundai that will be fostered as a key strategic pillar for future businesses.
“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. 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 Hyundai President and CEO Wonhee Lee.
To materialise 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.
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. 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 eight percent in its automotive business and aim for a five 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.