Hyundai’s aggressive EV plan aims to be Toyota’s worst nightmare

In the midst of a changing automotive landscape that is hyper-focused on the future of cars centered around electric vehicles, Toyota has made a decision that would shock automotive enthusiasts and its most loyal fans and customers.

In an exclusive interview with Reuters, Toyota executives revealed that the brand is making a huge bet on hybrid-electric vehicles. The brand plans to convert most, if not all, of its gasoline nameplates into models offered exclusively with hybrid powertrains under the Toyota and Lexus brands.

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In an interview, Toyota’s head of sales and marketing for North America, David Christ, told the press that the automaker’s new models will be considered to become hybrids.

“Going forward, we plan to evaluate, car line by car line, whether it makes sense to go full hybrid,” Christ said.

While the second-largest automaker by volume juggles its hybrid offerings, the world’s third-largest is just getting started and unveiling plans to not only match Toyota’s game, but to introduce a potential game-changer game in the world of electrified vehicles.

Jaehoon Chang, chief executive of Hyundai Motor Co., during the company’s investor day in Seoul, South Korea, Wednesday, Aug. 28, 2024

Bloomberg/Getty Images

The Tiger of Ulsan

Back in Hyundai’s day (HYMTF) 2024 CEO Investor Day, the automaker unveiled its vehicle offensive, which includes a significant investment in hybrid vehicles and the introduction of extended-range electric vehicles (EREVs) to the company’s portfolio, alongside a full portfolio of traditional battery electric vehicles.

The plan, ironically called the “Hyundai Way” (Toyota’s organizational principles are known as “The Toyota Way”), the automaker aims to increase its sales numbers from an already impressive 4.21 million cars in 2023 to approximately 5.5 million by 2030; including 2 million electric vehicles.

Hybrids, hybrids and more hybrids for North America

The first pillar of the “Hyundai Way” plan is its new fixation on offering North American customers hybrid cars of any size or shape.

Hyundai is finding that North American car buyers are fueling an increased demand for hybrids that will only grow. To answer this call, the automaker announced that it is doubling its hybrid lineup from 7 to 14 models across various car segments, including luxury vehicles from Genesis.

To keep up with demand, Hyundai says it will produce future hybrid vehicles at its Georgia plant alongside the production lines of the battery-electric Ioniq 5 crossover and the upcoming flagship electric SUV Ioniq 9.

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The automaker said it is targeting a production volume of 690,000 hybrids in North America by 2030 and expects sales to reach 1.33 million cars by 2028.

While the automaker plans to introduce more hybrid powertrains to its vehicles, it is also committed to improving the hybrid engines themselves.

By January 2025, Hyundai plans to introduce the next generation of hybrid powertrains, which it says will offer improved performance and lower fuel consumption, and will include EV technologies such as regenerative braking and two-way EV charging.

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A new type of car

In response to what the automaker calls “a recent slowdown in electric vehicle demand,” Hyundai has confirmed that it is launching a range of electric extended range vehicles (EREVs).

Hyundai says these models are meant to “serve as a key bridge to full electrification” as they incorporate electric motors, a battery pack and a small combustion engine that serves as the power generator.

This combination allows for both refueling and charging, also offering a range of over 560 miles (900 kilometers), which reduces its reliance on the already strained charging network and away from the dangers of the infamous “charging hogs”.

Additionally, the automaker expects its EREVs to be more affordable than traditional battery-powered EVs, as they would require a much smaller battery.

Hyundai says it wants to sell more than 80,000 EREVs in North America, once equipped with select Hyundai and Genesis midsize SUVs. It plans to start mass production of the cars by the end of 2026, with sales starting in 2027.

Hyundai Motor Company trades on the OTC markets under the symbol HYMTF. Shares are up 3.68% since the opening bell and are trading at $64.64 at the time of writing.

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