Announced of first business plan after integration launch
To reinforce mobility SW/Enterprise IT
Aspire to pioneer new fields such as urban aviation and robotics
To invest 1.5 trillion in building a s
Hyundai AutoEver has presented its target to achieve annual sales of 3.6 trillion won in 5 years by expanding its businesses such as vehicle software (SW) and enterprise information technology (IT). It will establish a stable sales structure by converting into a cloud-based subscription business model and expand its business into new fields such as urban air mobility (UAM) and robots based on its SW capabilities.
On the 28th, Hyundai AutoEver held an online 'CEO Investor Day' and announced these goals and major business plans. In April, three IT companies in the Hyundai Motor Group (Hyundai AutoEver, Hyundai MNSOFT, and Hyundai Autron) were launched as a merged corporation called Hyundai AutoEver and presented the company's vision and strategy for the first time.
Jeong-sik Seo, CEO of Hyundai AutoEver, said, “In addition to expanding the vehicle SW platform, we will foster an integrated development environment platform and cloud-based vehicle interworking service as our core businesses. In enterprise IT, we will also continue to expand the role of IT through digital innovation and promote the advancement of core IT systems.”
Hyundai AutoEver will focus on vehicle software and the cloud, the underlying technology. It will develop vehicle SW platforms 'Mobilgene Classic' and 'Mobilgene Adaptive' based on international standard SW platform AutoSar and provide them to major domestic OEMs and parts makers. Mobilgene is currently applied to only about 10% of Hyundai and KIA models. Hyundai AutoEver is to expand the application of Mobilgene to all models by 2024.
Hyundai AutoEver will also strengthen the vehicle (car) cloud, a technology based on future vehicles such as autonomous vehicles and connected cars. The company predicts that the number of vehicles requiring cloud connection will increase by 30 million by 2025 due to the development of various services such as Over-The-Air update (OTA) and vehicle-related high-performance computing. Here, the amount of data to be processed in the cloud will increase 100 times more than it is now.
Hyundai AutoEver will provide stable cloud support around Gwangju Data Center and respond to demand by adopting hybrid cloud such as public and private according to the situation of each country abroad.
CEO Seo said, “The cloud will collect tens of millions of vehicle data, continuously analyze data, and conduct machine learning. It will not only collect data but also send it back to the vehicle to keep the vehicle smart and evolve its applications and services.”
In addition, Hyundai AutoEver will establish and build platforms for each mobility with specialized capabilities such as the Vehicle SW integrated development environment platform and Next generation mobility precision map data and platform such as autonomous vehicle, etc.
For enterprise IT, Hyundai AutoEver will expand smart factory and FMS (Fleet Management System), an integrated vehicle management service. It will complete next-generation global cloud Enterprise Resource Planning (ERP) applied company-wide by 2025 and adopt it to global business sites from 2026. Next-generation Customer Relationship Management (CRM) will also be completed and will be fully operational over the next three years.
In external IT business, Hyundai AutoEver will withdraw from System Integration (SI), except its strengths such as mobility, and promote qualitative growth through selection and concentration. Based on its SW platform capabilities, it will actively participate in next-generation mobility businesses such as UAM and robots (Boston Dynamics).
Based on this, Hyundai AutoEver has set a goal of achieving annual sales of 3.6 trillion won by 2026. In software license, it plans to create a stable sales structure every year by introducing a subscription model (payment of a fixed annual fee). The subscription business is expected to grow at an average annual rate of 18%, accounting for 23% of total sales in 2026. Hyundai AutoEver will invest about 1.5 trillion won by 2026 to build a subscription model.
CEO Seo said, “We will need at least 2,000 manpower by 2026 to achieve the goal. From this year to next year, we will hire 500 people annually and increase the ratio of new employees to foster talents that grow together with the company.” He added, “We will also focus on making Hyundai AutoEver, launched as an integrated company, spearhead the future era of mobility software.”
On the same day, Hyundai AutoEver announced its 2Q results, which recorded 514.7 billion won in sales and 33.6 billion won in operating profit on a consolidated basis. Compared to the same period last year, sales increased by 31.7% and operating profit increased by 26.5%. As of the first half of the year, sales were 871.3 billion and operating profit 45.1 billion won, up 21% from last year and 18.8%.
By Staff Reporter Ji-seon Kim firstname.lastname@example.org