SEOUL (Reuters) – Hyundai Motor said on Wednesday it is targeting annual global sales of 5.55 million vehicles by 2030, up 30% from 2023, as it seeks to offset slowing global demand for electric vehicles by doubling its hybrid lineup.
In a presentation of its medium- and long-term strategy, given on the occasion of an investor day, the South Korean company also indicated that it would buy back up to 4,000 billion won (2.69 million euros) of its own shares between 2025 and 2027 and would increase its dividends significantly.
Hyundai said it plans to pay quarterly dividends of 2,500 won per share between 2025 and 2027, a 25 percent increase.
In Seoul, the stock jumped 5% after these announcements, to close up 4.7%.
The automaker wants to expand its hybrid vehicle lineup from seven to 14 models, particularly in North America, but has not provided a timeline for these new releases.
“Recently, the speed of conversion to electric vehicles has slowed down. As a result, demand for hybrids is increasing, and hybrids are becoming a basic option rather than an alternative to internal combustion engines,” said Chairman and CEO Jaehoon Chang.
The company intends to introduce extended-range electric vehicle (EREV) models in North America and China, and plans to mass produce new EREVs in these regions by the end of 2026.
MORE HYBRIDS
Hyundai’s decision to focus more on hybrid vehicles follows moves by rivals Toyota and Ford to address slowing global demand for electric vehicles.
The group, which also owns Kia, plans to produce hybrid and electric vehicles at its new plant in the US state of Georgia.
Hyundai also stressed that the profitability of its hybrid models is similar to that of gasoline cars, and that this segment is increasingly contributing to its results.
The group’s pure EV sales fell by almost 25% year-on-year in the second quarter.
(Reporting by Heekyong Yang, Joyce Lee and Ju-min Park; with contributions by Jamie Freed, Tom Hogue and Sharon Singleton; Mara Vîlcu; Editing by Augustin Turpin)
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