Analysis of Hyundai Motor's 2026 Sales Target and Electrification Transformation Strategy

Based on collected data, I will provide you with a comprehensive analysis of the feasibility of Hyundai Motor’s 4.16 million unit sales target and the evolution trend of its sales structure.

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According to public data, Hyundai Motor’s recent sales trends show:

• 2024 Actual Sales
  : Approximately 4.14 million units, down 1.8% year-on-year [1]
• 2025 Target
  : 4.17 million units
• 2026 Target
  : 4.16 million units
• 2030 Long-Term Target
  : 5.55 million units (including Genesis brand) [2]

: The 2026 target is only 10,000 units lower than the 2025 target, reflecting the company’s towards the global auto market. Considering the 2024 actual sales (4.14 million units) are already close to the 2026 target, the target setting has obvious , aiming to balance market uncertainty and growth expectations.

:

①

: Hyundai Motor continues to set records in the North American market, achieving best-ever sales in Q1, Q3, and September 2025. Among them, Q3 total sales reached 239,069 units, up 13% year-on-year [3]. The ’s strong performance provides stable support for sales.

②

: In 2024, hybrid models became a growth highlight, with sales increasing by 354,000 units to 1.44 million units, accounting for 11% market share, (1.2 million units, 9.2%) [4]. Hyundai leverages hybrid technology and supply chain resilience to accelerate penetration into the U.S. market.

③

: The company plans to add 1.2 million annual capacity by 2030 and an additional 250,000 capacity in emerging markets through CKD mode, providing a foundation for medium-to-long-term sales growth [2].

:

①

: In 2024, the global EV sales growth rate dropped from over 30% in 2023 to approximately 15%, with weak market demand [5]. The are particularly sluggish; consumer concerns about range, charging time, and economic downward pressure have suppressed demand outbreaks [5].

②

: Chinese automaker BYD has surpassed Tesla to become the world’s largest EV seller, with China accounting for 68.4% of the world’s new energy vehicle share from January to November 2025 [6]. Chinese brands are accelerating their entry into Hyundai Motor’s traditional advantage markets such as South Korea.

③

: The U.S. Inflation Reduction Act’s preference for local production affects the capacity utilization rate of Hyundai Motor’s U.S. factories [5].

: The 4.16 million unit target has , but the following risk points need to be警惕:

• Conservative annual growth target
  (only 0.5% increase compared to 2024) provides a buffer for market uncertainty
• Hybrid and SUV product lines
  ’ strong performance will continue to support sales
• Risks lie in EV market growth falling short of expectations
  and competitive pressure from Chinese brands

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According to the “Hyundai Way” strategic plan:

Vehicle Category	2025 Target	Share	2030 Target	Share
Eco-friendly vehicles (including hybrid, pure electric, EREV, hydrogen fuel)	1 million units	25%	3.3 million units	60%
Pure electric vehicles	-	-	2 million units	36%
Traditional fuel vehicles	3.17 million units	75%	2.25 million units	40%

:

• Hybrid
  : Expand from the current 7 models to more than 18 models by 2030, covering multiple segments [2]
• Pure electric
  : 2030 target of 2 million units, a sharp increase from 2025
• Extended-range electric vehicles (EREV)
  : Planned to launch in 2027, using small-capacity batteries to control costs [2]

• Hybrid vehicle sales continue to grow, becoming the
  core driver
  of sales structure optimization
• Pure electric vehicle growth slows down, focusing on localized products in key markets (U.S., Europe, India)
• Traditional fuel vehicle sales decline slowly, but
  SUV models such as Tucson and Santa Fe
  still maintain stable demand [5]

• After the launch of EREV models, form a product matrix of
  fuel vehicles, hybrid, pure electric, EREV, hydrogen fuel
• Pure electric platform upgrade completed; the new generation electric platform achieves improvements in battery energy density, charging speed, and safety [2]
• Traditional fuel vehicle share decreases significantly but still maintains a certain share in emerging markets

• Eco-friendly vehicles account for 60%, of which pure electric vehicles account for 36%
• Traditional fuel vehicles gradually become secondary
  , mainly sold in underdeveloped markets
• Hydrogen fuel cell vehicles achieve commercial application in specific markets

According to public information, Hyundai Motor will adopt differentiated electrification strategies for different markets:

• China Market
  : Launch localized electric models (ELEXIO electric SUV and same-class electric sedan) to achieve localized production [2]
• European Market
  : Cope with strict emission regulations and changes in electric vehicle incentive policies, balance the launch of fuel vehicles and electric models
• U.S. Market
  : Make full use of
  U.S. factory capacity
  and IONIQ series advantages to compete with Tesla, GM, and Ford
• Emerging Markets
  : Cooperate with local partners through CKD mode to flexibly respond to challenges of insufficient charging infrastructure [2]

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:

Competitor	2024/2025 Performance	Threat to Hyundai Motor
BYD	Surpassed Tesla to become the world’s largest electric vehicle seller; 2025 delivery volume is expected to exceed 2 million units	Direct competition in Southeast Asia, Europe and other markets with obvious price advantages
Tesla	2025 global delivery of 1.636 million units, down 8.6% year-on-year [6]	Dominant in the U.S. and South Korean markets with high brand awareness
Chinese New Forces	Xpeng, Zeekr, etc. accelerate entry into markets such as South Korea [6]	Seize young consumers with intelligence and high cost performance

:

• Japanese brands
  (Toyota, Honda, Nissan) and Korean duo (Hyundai, Kia) rely on hybrid technology advantages, with a combined market share exceeding 45% [4]
• Hyundai Motor’s hybrid system is first installed on the new generation Palisade and will be gradually promoted to more models in the future [2]

①

: Global EV growth rate drops from 30% to about 15%; if it continues to slow down, it will affect the rhythm of Hyundai Motor’s electrification transformation [5]

②

: Chinese automakers such as BYD, Xpeng, and Zeekr are accelerating their entry into Hyundai Motor’s traditional markets such as South Korea and Southeast Asia [6]

③

: Factors such as the U.S. Inflation Reduction Act and changes in European emission regulations may affect market access and cost structure [5]

④

: Fluctuations in battery raw material prices and chip shortages affect production plans [5]

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According to brokerage API data:

Indicator	Value	Evaluation
Market Capitalization	68.53 trillion KRW	Third largest global auto group [4]
P/E Ratio	7.53x	Low valuation with safety margin
P/B Ratio	0.66x	P/B ratio below 1, indicating market undervaluation
ROE	9.66%	Stable profitability
Net Profit Margin	5.90%	Moderate profit margin with room for improvement
Operating Profit Margin Target	9-10% in 2027, over 10% in 2030 [2]	Clear upward trend

:

• The company plans to invest
  77.3 trillion KRW
  (approximately 3.96 trillion RMB) from 2026 to 2030, focusing on localization, software-defined vehicles, and core technology research and development [2]
• 54.5 trillion KRW
  for research and development,
  51.6 trillion KRW
  for equipment investment [2]

:

1. Conservative sales target
   provides downside protection
2. Hybrid advantage
   is more competitive against the backdrop of slowing EV growth
3. Low valuation
   (P/E 7.53x, P/B 0.66x) with safety margin
4. Clear long-term electrification strategy
   ; profit margin target rises to over 9-10% by 2030

:

1. Huge investment in EV transformation
   affects short-term profit margins
2. Competition from Chinese brands
   may erode market share
3. Weak global EV demand
   may affect strategy execution

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: Hyundai Motor’s 2026 sales target of 4.16 million units has , mainly based on:

• Conservative growth target
  (only 0.5% increase compared to 2024 actual sales)
• Strong performance of hybrid and SUV product lines
  will continue to support sales
• Sustained strong performance in the U.S. market
  ; European market responds to challenges through product matrix adjustment
• Capacity expansion plan
  lays the foundation for medium-to-long-term growth

From 2025 to 2030, Hyundai Motor’s sales structure will show the evolution path of

:

• 2025
  : Eco-friendly vehicles account for 25%, with hybrid as the dominant
• 2027
  : After the launch of EREV models, multi-technology routes run in parallel
• 2030
  : Eco-friendly vehicles account for 60%, pure electric vehicles account for 36%, fuel vehicles become secondary

Key points to focus on in the next 12-18 months:

1. Whether U.S. EV demand
   can resume high growth
2. Chinese brands’
   competitive strategies in South Korea, Southeast Asia and other markets
3. Hyundai Motor’s new generation electric platform
   technical breakthroughs
4. Hybrid vehicle
   penetration rate growth speed in the global market

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[1] Jinling API Data - Hyundai Motor Company Overview and Financial Data

[2] Auto News - “Hyundai Motor Releases Medium and Long-Term Targets and Proposes ‘Hyundai Way’ Strategy” (https://www.newsfcar.com/13376/)

[3] Yahoo Finance - “Hyundai Motor America Reports Record-Breaking September 2025 and Q3 Sales” (https://finance.yahoo.com/news/hyundai-motor-america-reports-record-125500889.html)

[4] 21st Century Economic Report - “2024 Automotive Industry Research Report” (http://www.21jingji.com/article/20240725/herald/928eab4ea1027676a17c44fd096c69b6.html)

[5] Netcom News - “Hyundai Motor Sales Decline: Growing Pains of Electrification Transformation?” (https://www.news18a.com/news/storys_212647.html)

[6] East Money - “Auto Morning News | Tesla’s Annual EV Sales Surpassed by BYD for the First Time” (https://finance.eastmoney.com/a/202601043607774980.html)

[7] Global Times Auto - “Hyundai Motor Releases Medium and Long-Term Strategy for Comprehensive Electrification Transformation” (https://auto.ifeng.com/c/8msT9bPMyfI)

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