Hyundai Motor Co. revealed plans to double its hybrid vehicle offerings amid a slowdown in demand for electric vehicles (EVs) and announced a 4 trillion won ($3 billion) share buyback as part of a strategy to enhance investor returns.
During its 2024 investor day, the world’s third-largest automaker outlined its intention to increase its hybrid lineup to 14 models, expanding beyond compact and mid-size vehicles to include larger and luxury cars. Despite this shift, Hyundai maintained its EV sales target of 2 million units annually by 2030.
Hyundai’s stock rose by as much as 5.3% in Seoul trading following the announcement of the buyback and the company’s commitment to a minimum annual dividend of 10,000 won per share. These moves are key components of a broader plan to achieve a 35% total shareholder return between 2025 and 2027.
The decision to accelerate hybrid production comes as the industry faces a broader decline in EV demand, with companies like Ford, Porsche, and Mercedes-Benz scaling back their EV goals. Hyundai aims to address this slowdown by expanding its hybrid and extended-range EV offerings while gradually increasing its EV lineup by 2030, anticipating a resurgence in demand.
To ease concerns about EV range limitations, Hyundai plans to introduce an extended-range EV capable of traveling over 900 kilometers (560 miles) on a single charge, targeting markets in North America and China. The company has seen strong sales of hybrids, which made up about 12% of its total vehicle sales in the second quarter, contributing to record profits. Hyundai also intends to increase investment in its Georgia manufacturing plant to support hybrid production.
Additionally, Hyundai announced plans to invest 121 trillion won over the next decade to advance production capabilities and make significant strides in areas like hydrogen vehicles, EV batteries, and software for future mobility solutions.
