Hyundai CMO explains why the company is investing in electric vehicles

Lifestyle

Cannes Lions

by Alexandra Steiglärd

Hyundai Motor America’s chief marketing officer, Angela Cepeda, is leading the company into an electrified future.

The executive, who joined the company in October 2019, has led Hyundai’s aggressive electric vehicle push, helping the company become the second-largest electric vehicle seller in the U.S. after Tesla and the third-largest automaker in the world.

Cepeda spoke with Page Six at Cannes Lions 2024 to discuss why Hyundai is betting big on EVs by investing $28 billion in production over the next decade and how the culture of the auto industry is changing.

question: Can you tell us about Hyundai’s electric vehicle journey and the decision-making behind it?

Angela Cepeda: Hyundai’s commitment to EVs is robust as we continue to execute on our long-term electrification strategy, which is core to our vision for human progress. We are confident in the long-term growth of the U.S. EV market, as demonstrated by our $12.6 billion investment in our new dedicated electric vehicle and battery manufacturing facility in Georgia and continued growth in EV sales, up 49 percent through 2024.

While other manufacturers are stepping back on their electrification strategies, we remain focused on our electrification business goals and our most awarded EV lineup in the U.S., including the IONIQ 5, IONIQ 5 N, IONIQ 6 and Kona Electric. In fact, we just launched a new national marketing campaign showcasing the design and technology benefits of Hyundai EVs, which you can watch on YouTube.

Q: Who is your core EV consumer?

A-Z: Our target demographic is consumers between the ages of 21 and 44, but EVs are available to everyone.

As the EV market moves from early adopters to mass-market consumers, we are committed to showing buyers interested in EVs how easy it is to make the switch and all the options Hyundai has to offer. Wherever your life takes you, whatever your journey, Hyundai can make it happen with mobility solutions.

Q: There seems to be demand for EVs among younger customers, but the price can be too high. How do you bridge this gap?

A-Z: Affordability is becoming increasingly important and we are constantly evaluating and adjusting our product mix to meet demand. Our focus is on increasing trim levels to meet consumer preferences and continuing to promote the award-winning attributes of our IONIQ 5, IONIQ 6 and best-in-class SUV and sedan line-up.

Increased competition in the market and government incentives, including the U.S. Anti-Inflation Act, will continue to put pressure on prices and bring EVs into the price range of more consumers.

EV options are expanding. Many companies are focusing on automotive innovation, but it’s not enough. EVs can be intimidating, and the unknown costs of owning an electric vehicle (rebates, home charging, maintenance, etc.) remain barriers to adoption. Expanding access to EV charging and accelerating the transition to zero-emission vehicles for everyone, regardless of the type of home or neighborhood they live in, is part of our mission to Advance Humanity.

As e-mobility reaches a tipping point and the market rapidly grows, we must ensure our customers can take full advantage of the benefits of electric vehicles. Working together to build EV infrastructure will increase consumer interest and EV adoption. Hyundai has thought of everything to turn the transition to EV into a lifestyle change. From buying to owning an EV, Hyundai provides peace of mind (exterior details, interior convenience, intuitive technology) and ease of ownership (Hyundai Home, EVOLVE+) at every step of the journey.

Q: Hyundai has undergone a major transformation. Can you talk about when that began and how the company culture paved the way for such innovation?

A-Z: We are committed to our vision of “Human Progress” and are focused on human mobility with minimal environmental impact. We have a vision for people and goods to move more sustainably, safely and efficiently, and at Group level we have the resources to make the right investments to make this a reality.

We firmly believe that the automotive industry has a huge responsibility and opportunity to take proactive action against climate change. From electrifying our entire range to launching our IONIQ brand and researching hydrogen technology for more than 20 years, we have consistently been leading the transformation towards a more sustainable value chain. Our product range reflects this mindset. For Hyundai, carbon neutrality and sustainability are not just trends, they are mindsets and social imperatives.

Q: Hyundai often speaks about the importance of the U.S. market. What is the brand’s strategy for continuing its strong growth in the U.S.?

A-Z: The United States is one of our most important markets and we are pleased to see EV sales continue to grow.

Hyundai Motor Group is the world’s third largest automaker, third in retail sales in the United States, and second in EV sales in the United States after Tesla.

As of 2024, Hyundai’s EV sales are up 51% year over year. The company is focused on electrification in the US because it sees long-term growth there. It is open to short-term fluctuations, but ultimately sees potential in the EV market. Hyundai’s electric vehicle sales in the US are expected to double year over year in 2023, reaching its global goal of 2 million EV sales by 2030.

Q: What is the outlook for the U.S. auto industry?

A-Z: EVs are the future. It’s a matter of when, not if. That being said, we need to meet our customers wherever they are, which is why we will continue to offer ICE. [internal combustion engine] Hybrid vehicles. With $28 billion invested globally over the next decade to expand local production of EVs in the U.S., Europe, South Korea, India and elsewhere, the country is on track to achieve its goal of 2 million EV sales by 2030. Global demand for EVs is growing faster than market forecasts, and the IEA’s recent 2024 EV outlook noted that, despite short-term fluctuations, EV sales data remains strong..

Q: Are advertising budgets recovering? What is the outlook for the advertising industry? And how will the upcoming election affect it?

A-Z: Economic indicators are improving and analysts predict that marketers across most categories will spend more on advertising in 2024 than they did last year – and that’s excluding political advertising. Not only is digital advertising the main driver of growth, but retail media from e-commerce sites and digital OOH is also driving growth. [out of home media] Connectivity to apps and social platforms is expanding the network of marketing opportunities.