🚂Autowist Report 78

Hyundai's Strategy Day

Here's a summary from Hyundai's Investor Day from last week:

• From a vehicle type point of view, Hyundai did not rule out combustion completely. Expansion plans for xEV vehicles have been announced.

• Hyundai is seemingly also is planning to expand into Algeria. In the last issue, I wrote why Algeria might be a good place, since HAC, Geely etc. are also planning to setup shop there.

• Hyundai originally announced in 2022 that it would launch 11 all-electric vehicles by 2030, but that target has now increased to 21 models by the end of the decade.

• Hyundai mentioned that they will have a new cell-to-vehicle structure. With a improved heat transfer performance of about 45%. This is quite a huge improvement.

• They plan to introduce a mass-market variant of the NCM battery. Reduced cost and a hit in performance is to be expected as compared to higher performance type batteries.

• As part of improved battery safety technology, they mention real-time cloud diagnostics of their battery. This is a feature that I am a bit skeptical about as it takes a whole plethora of services and system s to work for this to work truly real-time. But I would more bet on that "real-time" here is used more of as a buzzword rather than as a technical aspect of their cloud solution.

• Their SDV related slide is as good as one that is generated by ChatGPT. Nothing really new there.

• In E/E Architecture, they are moving towards a consolidated architecture with zonal ECUs. For the IVI they are planning to use Android OS.

Hyundai’s New Strategy: The ‘Hyundai Way’

• Strategy Overview: Hyundai Motor Company unveiled its ‘Hyundai Way’ strategy at the 2024 CEO Investor Day, focusing on EV and hybrid competitiveness, battery and autonomous vehicle advancements, and energy mobilization.

• Market Position: Hyundai aims to secure leadership in a volatile market by expanding beyond vehicle manufacturing into various mobility forms and the energy sector.

• Hybrid Expansion: Hyundai plans to double its hybrid lineup from 7 to 14 models, including luxury Genesis models, and introduce the next-gen TMED-II hybrid system with improved performance and efficiency starting in January 2025.

• EREV Introduction: Hyundai is developing a new Extended Range Electric Vehicle (EREV) with a 900 km range, to be mass-produced by 2026 and launched in North America and China in 2027.

• EV Lineup Expansion: Hyundai plans to launch 21 EV models by 2030, including affordable, luxury, and high-performance models, aiming to sell 2 million EVs annually by 2030.

• Increased Production Capacity: Hyundai targets a production capacity of 5.55 million vehicles globally by 2030, including 1 million additional units.

• Global Presence: Hyundai is expanding its production facilities in the U.S., India, China, and Indonesia and establishing a strong presence in emerging markets like the Middle East, South America, and Asia.

• Manufacturing Innovation: Hyundai is integrating advanced technologies like AI and robotics into its production processes, enhancing efficiency and product quality.

• Battery Strategy: Hyundai is focusing on battery technology diversity, safety, and cost efficiency, developing next-gen batteries like solid-state batteries and optimizing the cell-to-vehicle (CTV) structure for better integration and performance.

• Safety Enhancements: Hyundai is advancing battery safety technologies, including real-time diagnostics and advanced cooling systems, to ensure EV safety and reliability.

• SDV Development: Hyundai is transitioning to software-defined vehicles (SDVs), incorporating AI and digital twin technologies, and developing a next-gen infotainment system based on Android Automotive OS.

• Autonomous Vehicles: Hyundai plans to launch an Autonomous Vehicle Foundry Business, supplying autonomous vehicle platforms globally and expanding its robotaxi services, particularly in North America.

• Hydrogen Focus: Through its HTWO brand, Hyundai is expanding its hydrogen fuel cell system lineup for various applications, aiming to lead the global energy transition and achieve net-zero carbon emissions by 2045.

• Sustainable Energy: Hyundai is pioneering hydrogen production methods like Waste-to-Hydrogen (W2H) and Plastic-to-Hydrogen (P2H), integrating mobility and energy solutions through the HTWO Grid for a sustainable future.

Battery agnostic platforms and battery-based platforms

1. GM's Ultium Platform is designed to be built around different battery forms and chemistries.

2. Ultium battery cells feature nickel-cobalt-manganese-aluminum (NCMA) chemistry, and will be manufactured by Ultium Cells LLC, a joint-venture of GM and LG Energy Solution as large format pouch cells. (Link)

3. In China, Ultium-branded battery cells use nickel-manganese-cobalt (NMC) chemistry and are manufactured by CATL with cylindrical packaging. (Link)

4. The next-generation Chevrolet Bolt EV will use Ultium cells with lithium iron phosphate chemistry, which will reduce peak and nominal cell voltage. (Link)

5. The key point here is that as OEMs try to make a battery agnostic platform, what they are inadvertently creating is product characteristics that consumers will see right through. :et me explain..

6. In the smartphone world there was a time when Samsung built a mobile phone both with their own Exynos chip and also with Qualcomm chips. After the tech reviews came out, it was clear that the Qualcomm based smartphone was superior and the one to get. I doubt if the same effect will be seen with these vehicles.

BYD adds a German Distributor (Link)

• BYD has strengthened its position in the European EV market by acquiring its German distributor, Hedin Electric Mobility.

• The acquisition allows BYD to take direct control of sales, parts distribution, and store management in Germany. The deal is pending regulatory approval and is expected to close in the fourth quarter of this year.

• Prior to the acquisition, Hedin managed relationships with six German dealers; it will continue as an authorized retailer in certain regions post-acquisition. I won't be surprised if over the years other brands are lowered in priority as an authorized retailer by the OEMs.

• The acquisition is part of BYD's broader global strategy, which includes manufacturing sites in Europe and Mexico and a target of 20% annual sales growth.

What next?

1. I won't be surprised if over the years other brands are lowered in priority as an authorized retailer by the OEMs.

2. BYD and Hedin come together to create a unique customer experience tailored to the German market.

3. BYD gains a direct to market channel that will pay dividends in the long term.

New Carplay Feature featuring Target (Link)

1. Target has significantly updated its CarPlay app, introducing two major new features. The first feature allows users to find nearby Target locations and launch Apple Maps for turn-by-turn navigation.

2. The second feature, called Drive Up, lets users manage order pickups directly from the vehicle's screen, including notifying the store when they are en route and when they arrive.

3. The app provides detailed information such as parking instructions and store addresses, and users can interact with options like "come later," "navigate," and "I'm here" directly from the CarPlay interface.

Here's my take on it:

1. To me this sounds like a "Maps" app with a specific feature for one vendor. But what this more deeply represents is the start of location and context based features that will come to cars in the coming years.

2. For these kind of features to work, we need an open-standard (similar to how the RSS feed works for the internet) that vendors, institutions and businesses around the world can push towards. Together with additional knowledge of location and intent of the driver, vehicles can begin to make smart suggestions.

Tech Research: Boost Battery Health (Link)

Traditionally, the initial charging cycles of EV batteries in the factory are slow and done at low currents to stabilize the battery. However, the study, published in Joule, found that using high currents during these initial cycles can extend battery life by 50% to 70%.

The study explains that during the first charge, high currents cause some lithium loss, but this loss helps form a protective layer on the battery's negative electrode, which enhances long-term performance. This finding contrasts with the usual low-current approach and suggests a more efficient method that could accelerate battery production and improve EV battery longevity.

From Twitter: