Hyundai Motor Unveils New ‘Hyundai Way’ Strategy and Outlines Mid- to Long-Term Goals at 2024 CEO Investor Day

① Forthcoming 10-year Investment Plans

Hyundai Motor has announced a total investment of KRW 120.5 trillion for the next decade, from 2024 to 2033. This is KRW 11.1 trillion more than what was announced last year. The investment breakdown includes KRW 54.5 trillion for Research and Development (R&D), KRW 51.6 trillion for Capital Expenditure (CAPEX), and KRW 14.4 trillion for strategic investments.

In alignment with the Hyundai Way strategy, which encompasses Hyundai Dynamic Capabilities, Mobility Game Changer and Energy Mobilizer, the company emphasized its investment plan, which will be implemented in phases.

Under the Hyundai Dynamic Capabilities strategy, the company plans to invest a total of KRW 92.7 trillion. This includes KRW 37.4 trillion for Research and Development (R&D), KRW 50.8 trillion for Capital Expenditure (CAPEX), and KRW 4.5 trillion for strategic investments. This investment aims to bolster Hyundai’s competitiveness in the era of electrification, focusing on hybrids, new EREVs, next-generation modular architecture and battery technologies.

Under the Mobility Game Changer strategy, Hyundai Motor plans to invest KRW 22.1 trillion in advanced software and E/E architecture, leveraging its expertise in hardware development and production. This investment is also intended to bolster the company’s future pursuits in autonomous driving, software-defined vehicles, and robotics.

Under the Energy Mobilizer strategy, Hyundai Motor plans to invest KRW 5.7 trillion to develop hydrogen ecosystems and value chains, further enhancing its existing expertise in hydrogen energy.

② Mid- to long-term Financial Goals

Hyundai Motor targets an operating profit margin of 9 to 10 percent in 2027 and over 10 percent in 2030 through continuous cost enhancements for EVs and the introduction of EREV models.

The company expects to achieve equal profitability on its entire powertrain lineup, including ICE, hybrids, EREVs and EVs by 2030.

③ Expanding Shareholder Return Policy

Hyundai Motor plans to bolster its corporate value by implementing a total shareholder return (TSR) concept. This system includes dividends, as well as the cancellation and buyback of treasury stocks.

Starting from this year, Hyundai Motor has committed to paying a minimum annual dividend of KRW 10,000 to its shareholders. The company also plans to transparently communicate its rationale for share buyback, by either enhancing Hyundai Motor’s corporate value or distributing the stocks to its employees.

From 2025 to 2027, Hyundai Motor will employ a proactive and sustainable TSR of more than 35 percent. This will involve a flexible approach between the sum of dividends, buybacks and cancellations of treasury stocks. During this period, the company aims to achieve an average ROE of 11 to 12 percent.

Over the next three years, Hyundai Motor will initiate a stock buyback program worth up to a total of KRW 4 trillion, in accordance with the TSR. The annual amount will be flexibly determined based on the company’s return on equity (ROE) targets.

Additionally, Hyundai Motor will offer a minimum quarterly dividend of KRW 2,500, representing an increase of 25 percent compared to the current year. In instances of retiring or repurchasing treasury shares, the company will also consider the value of its preferred stocks.