Hyundai's CEO Jose Munoz's Vision Of Future Of Mobility & Hyundai

Forbes

03-06-2025

I recently had the chance to talk to José Muñoz, the President and CEO of Hyundai Motor Company, and it was a deeply insightful conversation. We spoke at length about the megatrends impacting the future of mobility, his views on the car of the future, and his vision for making Hyundai the leader in both passenger cars and commercial vehicle sales, among other things.
Check out the exclusive interview, available on MarketsandMarkets, in which he shares insights on how the automotive giant is managing disruption through dynamic capabilities and strategic diversification.
Hyundai CEO Jose Munoz
The mobility sector is at an unprecedented crossroads, at the brink of perhaps the perfect storm of technological, social, and economic disruption. In an exclusive conversation, José Muñoz, President and Global CEO of Hyundai Motor Company, provides compelling insights into how one of the world's largest automakers is not just adapting to change but actively shaping the future of mobility.
The Megatrends Shaping the Future of Mobility
As a true visionary leader, José sees several megatrends converging that will reshape mobility. These include the rapid advancement of AI and digital connectivity—which, as per him, will shape personalised driving and digital living experiences—advanced driver assistance systems, and entirely new mobility services. He also sees social trends like demographics (shifting mobility ownership expectations from Gen Z and millennials) and geopolitics shifting supply chains and manufacturing footprints globally. However, the one trend that he feels is a true game-changer is that the convergence of mobility and energy represents the defining trend of our time. 'Our Executive Chair's vision of 'Progress for Humanity' recognizes that the future of transportation is inseparable from how we generate, store, and use energy', he explains. This philosophy has driven Hyundai Motor Group's bold diversification beyond traditional automotive boundaries into robotics with Boston Dynamics, advanced air mobility through Supernal, and hydrogen infrastructure via HTWO.
This integrated approach reflects what Muñoz describes as Hyundai's cultural DNA—balancing ppalli-ppalli (fast-fast) execution with miri-miri (in advance) strategic thinking. The philosophy has enabled Hyundai to respond dynamically to market shifts while keeping its long-term vision intact.
The Multi-Energy Reality
As the automotive industry struggles to find the right pace of transitioning to electric vehicles, Hyundai has chosen a guarded approach that could yet be ahead of its time. Its hybrid vehicle sales grew 85% in the US market last year, validating its diversified powertrain strategy. 'Our business is ultimately driven by consumer demand, not regulatory mandates', Muñoz emphasizes, revealing Hyundai's plans to double its hybrid electric vehicle portfolio from 7 to 14 models and sell more than 1.3 million hybrid EVs annually by 2028. He explains that the increase in hybrids isn't a retreat from electrification but rather a sophisticated understanding of market realities and consumer demands. Hyundai's manufacturing flexibility allows it to produce multiple powertrains on the same line, providing crucial adaptability as markets evolve at different speeds globally. And while the company's commitment to carbon neutrality by 2045 remains unchanged, its path there considers the diverse needs of consumers across various regions and use cases.
A Diversified & Customised Product Portfolio
When quizzed about Hyundai's stellar product portfolio, Muñoz outlined a comprehensive approach that balanced stability with opportunity. 'We'll continue to maintain a broad portfolio while making strategic bets in high-growth segments. Our fundamentals are strong—we're building high-quality, safety-focused, eco-friendly vehicles across all major segments, and this diversity gives us stability while allowing us to capture emerging opportunities'. The strategy spans from continued SUV and crossover expansion, where models like the Tucson, Santa Fe, and PALISADE demonstrate market strength, to significant luxury growth through the Genesis brand, which has established itself as a legitimate contender in just ten years with stunning design and exceptional quality. He also has enormous confidence in the three-row IONIQ 9 EV, which he confirms is 'generating tremendous interest', as well as in the electrified Genesis GV70 and other upcoming models.
From a product perspective, Muñoz emphasized that their approach transcends traditional categorization: 'Ultimately, our product strategy is guided by customer needs rather than internal preferences. We maintain the flexibility to adjust our portfolio mix as market conditions evolve—a key component of our Dynamic Capabilities approach, with manufacturing processes designed to allow rapid shifts between different models and powertrains based on demand'.
Software-Defined Future
Though Muñoz agreed that 2025 will be the breakout year for software-defined vehicles, Hyundai is pursuing what Muñoz calls a 'balanced approach'—developing core software capabilities internally while strategically partnering with technology leaders. This hybrid model allows control over customer experience while leveraging external innovation and scale.
His strategy rests on three pillars: a unified vehicle architecture enabling over-the-air updates, strengthened internal software capabilities through their Global Software Center, and strategic partnerships like their collaboration with Waymo. This approach recognizes that vehicles require deep hardware-software coordination for safety and reliability.
The Consolidation Reality
Munoz readily acknowledges that automotive giants like Hyundai have a significant advantage over smaller players when it comes to the high investments required for electrification, software development, and new mobility services. However, he clarifies that Hyundai's approach to consolidation is selective and strategic, focusing more on companies that can help improve Hyundai's core capabilities or give them an edge in adjacent spaces. And this can be readily seen in their acquisition of Boston Dynamics and 42dot, which align with their long-term vision rather than growth for growth's sake. 'Our priority is building on the strong foundation we've established and delivering on our ambitious growth targets for 2030', Muñoz states.
Hydrogen: The Long Game
Hyundai's forward-thinking approach is prominently seen in its take on hydrogen. While other manufacturers have shifted hydrogen fuel cells to the back burner, Hyundai believes they will be a game-changer in the future and continues to invest heavily in them. In fact, its XCIENT fuel cell trucks are already in production and have proven commercial viability in Switzerland, Korea, and the United States.
Muñoz's perspective on hydrogen extends beyond individual vehicles to encompass an entire ecosystem. 'The beauty of hydrogen is that it takes us beyond mobility toward an integrated ecosystem—from production to storage, transport, and delivery', he notes. This vision aligns with the company's broader strategy of addressing both mobility and energy challenges simultaneously.
Redefining Growth in a Zero-Sum World
The automotive industry is facing what Muñoz describes as four 'innovating to zero' disruptions: zero emissions, zero deaths, zero congestion, and potentially zero growth in traditional vehicle sales. His response to this challenge reveals sophisticated strategic thinking that goes well beyond conventional automotive approaches.
Rather than simply pushing more vehicles into saturated markets, Munoz wants to create new value sources through localization, expansion into new markets, development of mobility services, and diversification into adjacent sectors. The company's USD 21 billion investment in US operations over four years, creating 100,000 direct and indirect jobs, exemplifies this approach. 'If we view ourselves as mobility providers rather than just vehicle manufacturers, tremendous growth opportunities remain,' Muñoz says, while explaining that combating 'zero growth' requires companies to fundamentally rethink business models to be successful.
A Blueprint for Transformation
I came away from our conversation with a portrait of a company that has successfully balanced multiple seemingly contradictory imperatives: maintaining broad product portfolios while making strategic bets, pursuing electrification while expanding hybrid offerings, developing internal capabilities while forming strategic partnerships, and planning for the long term while executing with speed.
Whether Hyundai has cracked the code for the future of mobility remains to be seen. Still, there is no denying the fact that it has created a powerful and believable blueprint for manufacturers looking to navigate the coming changes in the automotive industry. By maintaining what Muñoz calls 'dynamic capabilities' or Hyundai's cultural DNA—the ability to respond quickly to market shifts while staying focused on long-term goals—Hyundai has positioned itself to survive the current disruption and emerge as a leader in the mobility ecosystem of the future.
As the automotive industry continues its transformation, Hyundai's strategy of diversified resilience combined with focused innovation may well prove to be the winning formula for sustained success in an uncertain future.
Read the detailed interview here on Markets and Markets Platform