Hyundai targets 30% rise in sales by 2030 as it doubles hybrid line-up

Hyundai said on Wednesday it was targeting annual global sales of 5.55-million vehicles by 2030, up 30% from 2023, as it plans to double its hybrid line-up to counter a slowdown in global electric vehicle (EV) demand.

Hyundai, the world's No 3 carmaker by sales with affiliate Kia, also said it would buy back up to 4-trillion won (R53.1bn) of stock between 2025 and 2027 and boost its dividends significantly as it laid out its medium- to long-term strategy at an investor day.

Shares surged 5% after the announcement, having traded flat beforehand, with analysts saying its new shareholder return policy was higher than expected. They closed up 4.7%.

The South Korean carmaker said it planned to expand its hybrid line-up to 14 models from seven as it expected a surge in hybrid demand, especially in North America. It did not provide a timeline for the release of the new cars.

“Recently, the speed of conversion to electric vehicles has been slowing. As a result, demand for hybrids is increasing, and hybrids are becoming a basic option rather than an alternative to internal combustion engines,” said Hyundai president and CEO Jaehoon Chang.

The company also said it aimed to introduce extended-range electric vehicle (EREV) models in North America and China, and planned mass production of new EREVs in the regions by end-2026.

Hyundai and other carmakers are reworking their strategies as global EV demand growth slows.

Ford and General Motors have delayed or cancelled new EVs to avoid spending heavily on models consumers are not buying as quickly as expected.

Hyundai's shift to focus more on hybrid vehicles, which combine an electric motor with a petrol engine, is in line with moves by rivals Toyota and Ford.

The South Korean carmaker said it planned to produce hybrid vehicles at its new Georgia, US, factory with EVs.

Hyundai said last month the profitability of its hybrid models was similar to that of petrol cars, highlighting the segment's growing contribution to its bottom line. Its sales of pure EVs dropped by nearly 25% in the second quarter this year from the same period in 2023.

The carmaker said on Wednesday it would seek to pay quarterly dividends of 2,500 won (R33.29) per share between 2025 to 2027, up 25% from previous levels.

It also announced the commercialisation of an autonomous driving vehicle foundry business that will sell autonomous vehicles to various global software companies.