Hyundai lifts margin target, expands US hybrid lineup

SEOUL, Aug 26 - Hyundai Motor has announced ambitious plans to boost production capacity by 1.27 million units by 2030 and expand its hybrid vehicle lineup in the United States, aiming to increase its operating profit margin above 9% within four years. The Korean automaker intends to launch or refresh over 100 vehicles globally by 2030, with half of these vehicles targeted for North America.

Among the new models are the Santa Fe extended-range electric vehicle (EREV), its first EREV to be built at the Alabama plant, and a luxury hybrid model.

The expansion is part of Hyundai's strategy to regain market share and enter new segments, targeting 'white spaces' where its brand is underrepresented. The automaker aims to raise its 2030 consolidated operating margin target from the 8% - 9% range it previously forecasted to above 9%, while maintaining its 2026 margin guidance at 6.3% - 7.3%.

Hyundai also reaffirmed its target of 5.55 million global vehicle sales by 2030, equivalent to a 6% market share, with electrified vehicles comprising 60% of sales by then, up from 23% in 2025.

CEO Jose Munoz attributed Hyundai's strong fundamentals to the company's global position. While Hyundai's U.S. push benefits from higher gasoline prices due to the Iran war, strengthening demand for fuel-efficient vehicles, the expansion also faces trade policy risks stemming from ongoing reviews of the U.S.-Mexico-Canada Agreement (USMCA).

U.S. officials have declined to extend the agreement automatically, creating uncertainty for capital-intensive investments reliant on cross-border supply chains. Additionally, Hyundai plans to broaden its business portfolio, including robotics, autonomous driving, and robotaxis. Hyundai's IONIQ 5 vehicles will be delivered to Alphabet's Waymo for use as robotaxis starting in the fourth quarter of 2026, and the company will launch driverless commercial services in Las Vegas later this year.

Hyundai plans to begin U.S. production of robots in 2028, targeting annual capacity of 30,000 units, and deploy Boston Dynamics' Atlas humanoid robot at its Georgia manufacturing plant from 2028.