As electric vehicle sales decelerate in the United States, demand for hybrid models is surging, prompting the world's third-largest automaker to aggressively expand its hybrid lineup in the American market and mount a direct challenge to its Japanese rival.

The Korean automaker has unveiled an ambitious product roadmap: by 2030, it plans to introduce over 100 new and refreshed models, with 58 earmarked for the North American market. The company projects that hybrids will account for more than half of its North American sales volume.

During an investor day presentation on Wednesday, Hyundai's chief executive officer said the North American market is where the company's hybrid business can achieve true economies of scale. In the second quarter of this year, Hyundai's hybrid sales in the US surged 71% year-over-year.

Rising fuel prices have fueled the hybrid boom, catching the Detroit Three off guard, as they have relatively few hybrid offerings in the US market. Hyundai also plans to enter 18 entirely new vehicle segments, including mid-size pickup trucks, directly challenging established players in America's most lucrative market niches.

With US electric vehicle sales declining due to the elimination of tax credits, Hyundai will launch extended-range electric vehicles in the first half of next year. The Santa Fe extended-range model will feature a small engine that acts solely as a generator to charge the battery, targeting a combined driving range of over 600 miles. Production will take place at Hyundai's Alabama plant.

While Hyundai channels substantial resources into the US, it faces intense competition from Chinese automakers in other markets, particularly Europe. Despite the bold product plans, Hyundai's shares on the Seoul exchange fell over 3% on the day, though they remain up approximately 36% year-to-date.

An analyst at the Korea Automotive Technology Institute noted that as the US hybrid market continues to expand, Hyundai has no choice but to aggressively pursue its hybrid strategy to protect profitability and market share there. However, the analyst added that in non-US markets, Hyundai will struggle to compete with rivals in the EV segment.

Hyundai aims to boost total vehicle production capacity by 1.27 million units by 2027, with 500,000 units of new capacity in North America. In response to potential auto import tariffs, the company plans to increase the share of locally sourced parts in the US from 60% to 80%.

Since acquiring Boston Dynamics in 2021, Hyundai also plans to compete with companies like Tesla in humanoid robotics and autonomous driving. The company says it will begin production of the Boston Dynamics Atlas humanoid robot at its Georgia plant in 2028, targeting an annual output of 30,000 units. Tesla, meanwhile, has stated it plans to achieve mass production of its Optimus humanoid robot by the end of this year, with a long-term target of one million units annually.

The analyst also noted that with other countries dominating global humanoid robot production, it remains uncertain whether Hyundai can secure large-volume buyers for its robots. Even with plans to deploy 25,000 units across its US factories, the analyst questioned whether Hyundai could sell even 5,000 robots, given that robots manufactured elsewhere offer better cost performance and strong capabilities.