Article content

(Bloomberg) — Hyundai Motor Co. said it will sell 2 million electric vehicles annually by 2030, raising its forecast from 1.87 million a year ago, as demand for clean-energy cars continues to surge.

Article content

The South Korean automaker also plans to spend about 109 trillion won ($85 billion) to boost production and make progress in areas such as hydrogen cars, it said in a statement Tuesday. 

Article content

The investment pledge from the world’s third-biggest carmaker follows Toyota Motor Corp. laying out an ambitious plan to sell 1.5 million battery EVs by 2026. Ford Motor Co. is pursuing a radical restructuring with ambitions to make 2 million EVs a year by 2026. 

Hitting the new goal would mean Hyundai’s EVs, including luxury brand Genesis, account for 18% of its global sales in 2026 and 34% in 2030, the company said. They will make up 53% of its sales in three key markets — Korea, the US and Europe – by the end of the decade. Volkswagen AG expects electric-battery vehicles to account for 20% of its global sales by 2025.

Read more: Ford Chairman Says US Can’t Yet Compete Against China With EVs

Hyundai and Kia have sold around 109,000 EVs this year, placing them fifth in the global industry, according to BloombergNEF.  

Hyundai is facing pressure in the US and Europe to increase domestic production of clean cars and reduce reliance on battery minerals and components made in China. The company aims to start mass production at its EV plant being built in the state of Georgia in the second half of next year, Chief Executive Jay Chang said at an annual event for investors Tuesday.