Hyundai lifts margin target, expands US hybrid lineup

Seoul, August 26 - Hyundai Motor announced on Wednesday plans to boost its production capacity by 1.27 million units by 2030, alongside expanding its hybrid vehicle offerings in the United States. The South Korean automaker aims to lift its operating profit margin to over 9 percent within four years. Hyundai intends to launch or refresh over 100 vehicles globally by 2030, with more than half of them targeting the North American market.

The company's strategy involves introducing models such as the Santa Fe extended-range electric vehicle (EREV) and a luxury hybrid vehicle. Hyundai's push is part of a broader product offensive, targeting areas where its brand presence is currently limited. The automaker also plans to raise its 2030 consolidated operating margin target from the previously forecasted 8 to 9 percent range to above 9 percent, while maintaining its 2026 margin guidance at 6.3 to 7.3 percent.

Hyundai reaffirmed its goal of selling 5.55 million vehicles globally by 2030, equivalent to a 6 percent market share, and noted that electrified vehicles would account for 60 percent of sales by then, up from 23 percent in 2025. CEO Jose Munoz highlighted that Hyundai's fundamentals have never been stronger, emphasizing the company's global position.

Hyundai's moves come amid higher gasoline prices due to the Iran war, which has increased demand for fuel-efficient vehicles, particularly hybrids. According to Cox Automotive data, 56 percent of U.S. car shoppers said rising fuel prices made them more likely to consider a hybrid, with hybrid sales rising 19 percent in the first half of 2026.

However, Hyundai's expansion in the U.S. also faces trade policy risks from the ongoing review of the U.S.-Mexico-Canada Agreement (USMCA), which governs duty-free access for vehicles and parts across North America. U.S. officials have declined to extend the agreement automatically, raising concerns about the stability of capital-intensive investment plans reliant on cross-border supply chains.

Hyundai also outlined plans to expand into robotics, autonomous driving, and robotaxis, with deliveries of IONIQ 5 vehicles to Alphabet's Waymo for use as robotaxis beginning in the fourth quarter of 2026. The automaker is also targeting the production of 30,000 robots annually starting in 2028 and deploying Boston Dynamics' Atlas humanoid robot at its Georgia manufacturing plant from 2028.

Additionally, Hyundai plans to build a 100-megawatt AI data center from 2029 to support software-defined vehicles and autonomous driving systems. The company announced it would cancel treasury shares worth about 789 billion won ($570 million) and maintain a shareholder payout ratio of at least 35 percent. Hyundai's shares fell 3.3 percent in response to the announcements, compared to the KOSPI's 1.3 percent rise.