By Heekyong Yang and Heejin Kim
SEOUL, Aug 26 (Reuters) – Hyundai Motor on Wednesday unveiled plans to add 1.27 million units of production capacity by 2030 and expand its U.S. hybrid lineups, as the South Korean automaker seeks to lift its operating profit margin above 9% within four years.
Hyundai said it would launch or refresh over 100 vehicles globally by 2030, over half of which will be in North America, as it seeks to regain ground against rivals and enter new segments.
New models would include the Santa Fe extended-range electric vehicle (EREV), its first EREV that it will build at its Alabama plant, as well as a luxury hybrid model.
It is a “product offensive across every region,” Hyundai said, adding that it was also targeting ‘white spaces’ where its brand is underrepresented today.
“These segments account for roughly 29% of all automotive sales, highlighting significant opportunities for growth.”
Hyundai said it would raise its 2030 consolidated operating margin target from the 8%-9% range previously forecast to above 9%, while keeping its 2026 margin guidance at 6.3%-7.3%.
Hyundai also reaffirmed a target of 5.55 million global vehicle sales by 2030, equivalent to a 6% market share, and said electrified vehicles would account for 60% of sales by then, compared with 23% in 2025.
“Our fundamentals have never been stronger,” CEO Jose Munoz said, pointing to Hyundai Motor Group’s global position.
Hyundai Motor, together with affiliate Kia Corp, is the world’s third-biggest automaker by sales.
RISKS AND ROBOTS
Hyundai’s U.S. push comes as higher gasoline prices linked to the Iran war have strengthened demand for fuel-efficient vehicles, particularly hybrids.
Some 56% of U.S. car shoppers said rising gasoline prices made them more likely to consider a hybrid according, to Cox Automotive data, while hybrid sales rose 19% in the first half of 2026 according to Omdia. Hyundai’s hybrid sales climbed 71% in the second quarter.
However, Hyundai’s U.S. expansion also faces trade policy risk from the ongoing review of the U.S.-Mexico-Canada Agreement (USMCA), which governs duty-free access for vehicles and parts moving across North America.
U.S. officials have declined to extend the agreement automatically, raising the prospect of annual reviews and less certainty for capital-intensive investment plans that depend on cross-border supply chains.
Hyundai also outlined plans to broaden its businesses, including robotics, autonomous driving and robotaxis.
It said deliveries of IONIQ 5 vehicles to Alphabet’s Waymo for use as robotaxis would begin in the fourth quarter of 2026. Hyundai’s Motional venture is also due to launch driverless commercial services later this year, initially in Las Vegas.
The automaker said it would begin U.S. production of robots in 2028, targeting annual capacity of 30,000 units. It plans to deploy Boston Dynamics’ Atlas humanoid robot at its Georgia Metaplant from 2028.
Hyundai is testing how humanoid robots could be used in car production at a facility in Georgia that replicates factory floor conditions.
The company also said it would bring online a 100-megawatt AI data center from 2029, with capacity for more than 50,000 graphics processing units (GPUs), as it expands software-defined vehicles and autonomous driving systems.
Hyundai said it would cancel treasury shares worth about 789 billion won ($570 million), while maintaining a shareholder payout ratio of at least 35%.
Shares of Hyundai Motor increased losses to fall 3.3% after the announcements, versus the benchmark KOSPI’s 1.3% rise as of 0557 GMT.
($1 = 1,384.8000 won)
(Reporting by Heekyong Yang, Heejin Kim and Joyce LeeEditing by Ed Davies and Lincoln Feast.)
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