Hyundai Motor Co

Good afternoon and welcome to our 2026 CEO Investor Day. A special welcome to those watching online. We are very pleased to be hosting this year's CEO Investor Day here in our home market. Our commitment to this country has never been stronger, just like our economic impact here. Our founder, Shunju Jung, literally paved the way to today's Korea. We are very pleased to announce that we have a tentative agreement with our union. Thank you to our employees for their continued dedication throughout this process. Thank you for being here. We appreciate your interest and we welcome the hard questions. Last year, we told you what we were going to do. Today, we want to give you a status report and show you the exciting road ahead. So, ladies and gentlemen, we are transitioning to a physical AI and technology company. We will be building, deploying, even financing robotics at scale. We are also advancing autonomous driving in-house and with partners. At the same time, we will never lose sight of delivering exceptional vehicles, beautifully designed cars that are highly quality, safe, and with features that customers appreciate. Our car business helps fund the future and we remain laser focused on delivering our plan. I say all the time that it is a great time to be at Hyundai and it is great to be in this industry. I've also said it is one of the most challenging times I've ever experienced. We draw inspiration from our founder to create opportunities from challenges. In the first half, we sold 2 million vehicles and delivered 95.2 trillion won in revenue, up nearly 3% and record. Operating margin was 5.6%, and it improved by 0.3 points from the first quarter into the second. Hybrid sales reached 363,000 units, up 18%. And in the United States, we have now grown market share for five straight quarters, thanks to our team, dealers, and partners in the U.S. Our market capitalization has averaged $105 trillion this year, 2.3 times last year's average. That is the market telling us it understands how we are transforming into a technology and physical AI company that also produces cars. So let's look at where our revenue is derived. North America is about a third of our volume. Korea, India, and Europe are each in the mid-teens. The rest sits across Central and South America, the Middle East and Africa, Asia Pacific and China. No single market carries this company. In a year like this one, that matters a lot. In the United States, we set records in the first half with 509,000 wholesale units and 490,000 retail sales. Our hybrid mix rose three points. SUVs are now 62% of what we sell. Mix is where margin comes from and ours is moving the right way. Third in the world by volume, second in operating income for second year running. Profitability at this level is what enables us to invest in future products, future mobility, capacity expansion, and physical AI. We are very proud of the evolution of our product portfolio. This is recognition that you cannot buy. 13 top safety picks this year across eight Hyundai models and five Genesis models. Consumer Reports has asked first for safety among premium brands, and second among mainstream. The Palisade is 2026 North American utility vehicle of the year. The Ioniq 6M is 2026 world performance car. And in India, the Venue took car of the year. Thanks to our engineering teams in Namyang for developing cars that not only meet or exceed our high expectations for quality and safety, but that have features that delight our customers. We know our competition isn't standing still, especially some of the newer OEMs. You will see how we are developing new cars that are ready to compete today and tomorrow. A word on our engagement at the World Cup. It is a significant investment, but also significant return for us. This simply shows that we made the most out of our investment and had very high engagement including more than 250,000 test drives in 44 countries, which we know drives purchase consideration. We're currently maintaining guidance for 2026 operating margin between 6.3 and 7.3, and we are also very realistic about impact of external factors in the short term. I am happy to announce for the first time that we see a path to an operating margin above 9% Our CFO will talk more about how we are increasing our target by maximizing synergies and better utilizing our supply chain. Our 2030 goals are intact. 5.55 million units of global sales by 2030 from 4.1 million. Electrified vehicles at 60% of the mix from 23%. and global market share of 6% from 4.7%. How do we get to 6.3 to 7.3% for the year from 5.6 today? The answer is our second half product offensive, which you will see in a few minutes. Those of you who know me know I think we can do always more, but this is our guidance today. Now, let's step back and look at the opportunities and some of the technology bets that we have been making. Future mobility opportunities double our profit pool potential by 2035. The car business is still the largest piece. What changes is everything growing around it. Software and connectivity, after sales, financing, on-demand mobility, robotics, very few companies sit across all of that. This is the power of the group. Boston Dynamics and Robotics Lab, Motional and 42 Dot, AutoEver, Capital, Mobis, Globis, we do not have to buy our way into the next decade. We are already living in it. The strategy is simple to say and had to do. Maximize the profit of the car business today throughout product efficiency and localization. then fund the future through the power of the group and our partnerships. SUVs, hybrids, performance and luxury pay for software, autonomy, physical AI, and robotics. Our business mix shifts across the decade. Now, let me show you the proof. The scale starts with platforms. Four of them carry almost everything we build, from the i10 to the IONIQ 9. And we share them with the group. That gives us the ability to be local without being expensive. The Exter for India. HB20 for Central and South America. Bayon for Europe. Santa Cruz for North America. Grand Air for Korea. Ionic V for China. The same platforms customized for the taste in each market. Finding synergies where they make sense. and making sure that our brand differentiation is clear to customers. And we have the same discipline on powertrains, with the most complete portfolio in this industry. Gasoline engines from Kappa through Lambda, hybrids in both front and rear wheel drive layouts, battery EVs from LFP through high performance nickel chemistry, fuel cells, and now extended range EVs for all ERVs which have so much potential and which I will come back to. This is how we maintain flexibility. When demand shifts and it has a great deal, IRA, conflict in the Middle East, we already have the product. I always tell the team, it is simple. Give customers what they want. The lifeblood of this industry is product. I am happy to announce for the first time that between now and 2030, we will have more than 100 product launches around the world. That is 100 launches for new or refreshed vehicles for Hyundai and Genesis over the next four years. 58 in North America and 22 of those at Genesis. I'm excited to also announce for the first time that we will have 49 launches here in our home market of Korea. We will have 41 launches in Europe. We've spoken about our ambitious plans in India and China, which you will see here as well. There are more than 18 new products and segments in which we don't compete today. This is very significant. And our first extended range EVs start production in early 2027. This is the most ambitious product offensive in our history. Before we talk about 2030, look at the next eight months for Hyundai. The all-new Elantra, which is the Avante in Korea. The brand-new Ioniq 3. The all-new Tucson and Tucson Hybrid. The first-ever Santa Fe E-REV, a brand-new SUV EV for India. An all-new Global B SUV and an all-new B SUV for Euro. Seven Hyundai launches after a slower first half. The Tucson is the seventh best-selling vehicle in the world with more than 10 million in global sales. The all-new Tucson and Tucson Hybrid arrive in the fourth quarter. And I want you to look carefully at what the Hybrid does against the gasoline version. 245 horsepower, 27% more power, and 43% more torque, faster to 100 kilometers an hour, and 43% better fuel economy at the same time. The all-new Tucson Hybrid offers the best combination of performance and efficiency. Extended-range EVs arrive in early 2027, and we build them on multiple continents. The Santa Fe EREV provides more than 600 miles of range, about 1.6 times what the gasoline Santa Fe delivers, using a new high performance battery and a two motor system that drives and accelerates like an EV. We already have prototypes of the new Santa Fe EREV on the line at our plant in Alabama. For a customer who wants the EV experience without changing how they refuel, we now have an answer, and it's made in America. This is a good way to dimension future product opportunities and portfolio wide space. There are 26 million units a year in segments where we have little or no coverage. That is 29% of the total industry. Pickups, light commercial vehicles, and large SUVs are the biggest gaps in the markets that pay the best. 100 new launches, 18 new products and segments. You have seen where we are going with Boulder, with Ionic Earth, and with Crater. Concepts are easy. What makes this different is that the body of frame architecture behind them is funded and in development. More than half of our growth from 4.1 million to 5.55 million comes from products we do not sell today. Body on frame vehicles, a large van, SUVs and MPVs. We are simply taking what we already build to places where we currently do not sell. The Exter and the Verna both made in India. going to new markets on the back of an ecosystem we have spent 30 years building. And the rest is organic share growth offset by portfolio rationalization that we're doing deliberately. Look at how we shape of this company, how we've changed. In 2020, more of our sales came from Korea and North America. By 2030, you can see a much more diversified regional sales map. Diversification of sales follows growth and opportunity. In this environment, it is also a hedge. With new vehicles and new launches, we need more production. So we are adding 1.27 million units of capacity by 2030. We are adding 500,000 capacity in North America, 320,000 in India, 250,000 across our CKD sites, including Saudi Arabia, Vietnam, and Algeria. 200,000 in Korea, including in our all-new EV plant in Unsan. As I have said many times, we build what we sell. That was true before tariffs, and it will be true long after. Localization is the name of the game. North America is where our hybrid story became a scale story. We have sold more than a million hybrids there. It started in 2011 with the Sonata hybrid at 1% of our mix. This year, it is 25% with the Palisade hybrid. And we'll continue with the all-new Tucson hybrid and the first hybrid Genesis, the GV80. By 2030, we will offer more than 10 hybrid models and hybrids will be half of what we sell in the region. Built in Alabama and at the Meta plant in Georgia. As I mentioned, our first extended range EV will be introduced in North America from the first half of 2027. Our supply chain is of course an essential part of our production ecosystem and another important aspect of localization. We will increase past localization on the vehicles we build in the United States from 60% today to 80% by 2030. We have added more than 275 local suppliers since 2024. One supplier at a time and one part at a time. Our mission has always been to bring value to our customers and offer affordable options. The Elantra SE brings people into our brand at under $23,000. 64% of those buyers, when they come back, come back for a Tucson or something above it. More than half of our sales mix is now trims carrying a 20% premium or better. Limited, calligraphy, and XRT Pro. And we do it spending 13% less on incentive and the industry average, while closing 77% of the transaction price gap to our competitors. We are not buying that volume. Customers are choosing to pay more because the product is worth it. Let's talk about Europe, one of the most competitive regions on the planet. We now cover 85% of that market with an electrified portfolio, and we are adding five new electrified models across SUVs and light commercial vehicles. We cover 100% of the B and C segments, which together are more than 60% of everything sold in Europe. This is full coverage where the volume sits. Our EV volume in Europe was 116,000 units last year, and it goes past 420,000. Every EV credit we earn protects the ICE and hybrid business alongside it. The EV line does not stand alone in the market. We have 580,000 units of European capacity with room to grow. And more than half of it will be battery electric, including the IONIQ 3. Local content is 85% in Czechia and 70% in Turkey. And our next generation of EVs takes 30% out of battery cost per kilowatt hour. Our sales and service footprint is more than 2,250 dealer outlets and service centers and 550 fleet business centers. Quality, reliability, and service are the most important topics for fleet customers so we service them what they needed. The Ioniq 3 goes on sale this month, built in Turkey, nearly 500 kilometers of range at 61 kilowatt hour battery and 29 minutes to charge from 10 to 80%. It is also the first vehicle in Europe with GLEOS Connect and our GLEO voice assistant. Now to India, one of our most important markets and where we also trade publicly. SUVs are 70% of what we sell there today. On that way, all the way to the 80% by 2030, the Creta has been the best selling midsize SUV in that market for 10 consecutive years. A brand new compact SUV EV is coming, designed and localized for India. And electrified vehicles reach half of our mix there by 2030, against our 30% for the market as a whole. The opportunities in rural India are massive. Rural rises to 30% of our sales by 2030. That is often a family's first car ever, and they are choosing us. We reach 85% district coverage by 2030, with more than 1,600 service touchpoints today and 79% customer retention. Also, this is important, and the capital launches there this year, so those customers have better ways to finance. India is now our second largest production base anywhere outside Korea. Our new Pune plant opened this year, taking us toward 1.1 million units of domestic capacity. Localized content goes from 84% today to more than 90% by 2030, with more than 1,400 local suppliers, three-quarters of them India-based, and more than 1,300 local engineers. More than 60% of our vendors are clustered around Chennai. We've been in India for 30 years, learning what customers want and how to deliver in the most efficient way possible. India is also a factory for the world. Our cost position there is more than 15% better than our global baseline. Four million vehicles have been exported to more than 70 destinations. Exports rise to as much as 30% of what we build there by 2030, with half of it going to the Middle East and Africa, and 40% to Central and South America. The I-10 venue and Exeter are built there for the world and nowhere else. Korea is the heart of our manufacturing operation. Ulsan is the largest automotive manufacturing operation in the world. 1.8 million units of capacity, more than 60% of it exported. 27,000 manufacturing employees and more than 4,700 local suppliers. 22 models coming down mixed powertrain lines. We are so grateful for the men and women at our facilities that build our vehicles with such precision and care. Later in the year, we will open the Ulsan EV Plant, and the first car down the line is the Genesis GV90. It is a software-defined factory with 108 advanced manufacturing tools. AI-enabled quality control and a manufacturing AI agent working alongside our people. And from 2027, we modernize Ulsan plants 1 and 4. We continue to invest in our modern plants. Hyundai Motor Group is investing 125 trillion won in Korea, the largest domestic investment in our history. 50.5 trillion goes into future business across AI, software-defined vehicles, electrification, robotics, and hydrogen, including 9 trillion for a dedicated hub. Another 38.5 trillion into research and development, and 36.2 trillion into our production facilities and the global business center. Korea is our home, spiritually and physically. Sometimes people ask me if we are a Korean company that's global or a global company that's Korean. The answer is yes. Our commitment to this country, to creating high-paying jobs and investments that benefit the economy and giving back is literally part of our DNA. No matter how much we grow internationally, Hyundai's success is Korea's success and Korea's success is Hyundai's success. Now China, where we are working to turn around the business and using all the levers of the group. After volume and profit declines, we are implementing a new plan and tripling down on the world's largest and most competitive market. Profit is stabilizing now, and we are on the way back to more than 500,000 units by 2030. The plan has three parts. We launch with a unique brand. modernized the network to 484 dealers by 2030, moving into Tier 1 and Tier 2 cities with lighter retail formats, and built with the best Chinese technology partners, in China, for China. IONIQ D launched there earlier this year. More than 600 kilometers of range, a 27-inch panoramic display, and AI assistant and driver assistance tuned for Chinese roads, which are unlike anywhere else. Developed in China, built in China. AB SUV and AC SUV follow in 2027, both offered as battery electric and extended range. Then a second phase with premium new energy vehicles on a full stack software platform. We are tripling down. We have the scale, the engineering, the network, and the power of the group to compete with anyone, anywhere, including in China. The Middle East and Africa is our next frontier. The middle and upper class there passes 700 million people by 2035, and industry volume goes past 5 million units. We are already the number two brand with 8.4 market share across more than 50 countries with eight assembly plants and double-digit margins. Our new Saudi Arabia plant opens in December and our facility in Algeria in 2027. Let me talk about performance because it is a profitable business, not just an emotional one. Hyundai N reaches about 30% of the performance market today. By 2030, we take that past 60%. We will have more than seven N variants across more than 40 markets, targeting 100,000 sales a year. And we are adding something between N and N line. A new volume high performance variant carrying over powertrain and parts from N. So a customer who wants that feeling every day on the way to work can have it without buying a truck car. N sold 20,000 units last year. N-Line sold 161,000. This sits between them and it is where the volume is. Five N models on sale today and 12 N-Line products. two world performance car winners in a row, the Ioniq 5N and the Ioniq 6N, and the Elantra N carving its own racing line. We earned that credibility before we put it in showrooms, and it is now spreading across the whole Hyundai lineup. Last week, we unveiled the brand new Genesis EV90 for the first time. I said, Korea has K-pop, K-beauty, K-Drama, and now with our new flagship luxury SUV, we have K-Luxury. Genesis reached a million cumulative sales in seven years and eight months. No luxury automotive brand has ever done it faster. And we are now in more than 24 markets. Ten years ago, Genesis was a promise. Since then, we've operated like a startup that has the resources of a well-funded parent company. This year alone, we have introduced the X Scorpio Concept, the G90 Windback, our first dedicated dealerships in Europe and the UK, the Magma GT and GT3 Concepts, our debut in the World Endurance Championship, and our first Le Mans, racing which is not just about marketing. Win on Sunday, sell on Monday. You cannot hide anything at Le Mans. and what we're learning as part of the World Endurance Circuit ends up in the cars our customers drive. Ladies and gentlemen, please welcome for the first time ever the Genesis GV80 Hybrid. We brought a new GV80 Hybrid to this event especially for you. The all-new GV80 Hybrid launches next month, the first hybrid Genesis has ever built. 352 horsepower, roughly 25% better on both efficiency and power, with a liquid-cooled hybrid battery. It drives like an EV, and it never asks the customer to plan their day around a charger. Ten years of Genesis, and it still looks like nothing else in the segment. A Genesis extended-range EV follows in early 2027, with more than 640 miles of range. And this is the Magma GT concept, the first pure sports car in the history of Genesis unveiled at Le Mans. A brand that wants to be taken seriously in luxury has to prove something on a racetrack first. Luxury is where the profit is, and it is growing. The global luxury market goes past 3 million units by 2031 at 10% compound growth. led by the United States, Europe, and China. And within luxury vehicles, 25% of buyers express excitement towards electrified super SUVs, more than any segment by a wide margin. We see a lot of excitement for super SUVs, and we certainly show a lot of enthusiasm for our brand new GV90 last week in San Francisco. Have a look.

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The Genesis GV90, our new luxury flagship. The Neolune arch gate coach doors with hidden B-pillars and our reductive design. Swilling seats, adaptive UX and OLED cinematics display and the world's first roof airbag. Nobody has done that before. The GV90 is the ultimate expression of the brand and our sun meme philosophy. The new GV90 rounds out our existing lineup. Seven models or 15 counting derivatives across SUVs, hybrids and performance. Five top safety peak plus awards. First for safety among premium brands. That is not a coincidence. It is intentional. We build this brand where our customers already are. The Genesis Invitational and the Scottish Open both extended to 2013. And we build the places to receive these cars. More than 270 retail locations globally by 2030. 50% more than today. Suji and the Genesis Lounge in Seoul. Almere in the Netherlands. Genesis Designs, California. And finally, Sydney. This year alone, Genesis launched in Italy, France, the Netherlands, Tunisia, and Morocco, with Spain in the fourth quarter. Austria, Denmark, Poland, and Portugal followed in 2027. Then, India and Asia-Pacific. More than 40 markets and 350,000 sales by 2030. Now, let's shift from luxury to future mobility. Autonomous driving has the potential to increase safety and convenience exponentially, and it also has incredible profit potential. Our AV foundry business is enabling a scalable robot taxi development, starting with an AV-ready Ioniq 5. Our approach to autonomy includes in-house development with Motional and 42DOT, as well as partnerships. Motional is partnering with Uber to make driverless commercial rides available later this year on the Uber app. I also want to give an update on our Waymo partnership. We have completed nine months of public road testing so far. Deliveries of AV-ready Ioni5 to Waymo will begin later this year. Fully built in the United States with a domestic supply chain. I am excited to announce that we are bringing this Wemo partnership to international markets. We are also entering the electric three-wheeler segment with TBS Motor Company, designed by Hyundai, co-developed and produced by TBS. Concepts to prototype in under 24 months with very little capital from us. It opens a mass volume segment across Asia and Africa that we could not have reached alone. Our partnership with Amazon continues to expand as well. Amazon Autos now covers 80% of the US market through dealer enrollment and 78% of those buyers are new to Hyundai. I'm happy to announce that we are expanding Amazon Autos to international markets as early as 2027. Alexa extends across our entire lineup with Genesis to follow. Together with AWS, we are scaling our AI work across software, autonomy, and robotics. And finally, we are exploring collaboration across optimized logistics, alternative energy, and new customer experiences. As our executive chair said last week, we are becoming a physical AI company. We are moving faster than our competitors to produce and deploy robotics at scale. Ground zero for commercialization of robotics is our newly opened Boston Dynamics Robot Metaplant Application Center at HMGMA. It exists to collect data and validate robots against real factory conditions before they ever touch a production line. By the end of this year, we expand the site more than tenfold. Deployment of the meta plant in Georgia follows at a scale in 2028 and global robotics deployment from 2030. Let me be clear about our utilization of robots. Robots are in service of humans. They do the work that is difficult and repetitive. Ultimately, this will improve safety, quality and efficiency in our operations. Robots are not replacing humans. We are creating new categories of jobs like robot maintenance, all while maximizing human potential. And here is what makes this different from a research project. We are investing in robotics manufacturing facility in the United States, starting production in 2028 with 30,000 units of annual capacity. It will be the world's first large-scale commercial robotics manufacturing facility. The first 25,000 commercial units are already confirmed, starting with the meta-plant, and we are utilizing additional industrial and logistics partners. Let me give you some dimensions of the opportunity. Boston Dynamics is now part of the group. We are building spot and stretch robots, and soon we'll be mass-producing Atlas humanoid robots. We have existing potential distribution for selling robots through our dealer partners. And Henry Capital is exploring the feasibility to finance sales of robots. Development, production, distribution, sales, and finance for robotics. Ladies and gentlemen, this is the power of the group. All of that fits inside the largest commitment we have ever made in America. $26 billion between 2025 and 2028. and 25,000 new direct jobs. A new low-carbon steel mill in Louisiana, $5.8 billion, and 2.7 million tons of capacity supporting 5,400 jobs directly and indirectly. U.S. robotics production is starting in 2028 with 30,000 units of annual capacity. We will have more to say about the site soon. As was reported last week, we need more production capacity. We are actively looking for opportunities. The decision is not yet final. What is final is the direction, because we have committed to building more than 80% of what we sell in America in that country by 2030. And we cannot do that without more capacity. We began as a Korean company that is global. In the United States, with thousands of people working with us and our ecosystem from Alabama and Georgia to Michigan and California, we have become a part of the fabric of America. Now, the data underneath all of this is what makes it work, and nobody understands that better than my colleague. Please welcome Minoo Park, head of our Advanced Vehicle Platform Division.