Hyundai Motor Group Announces Historic $16.6 Billion Investment in South Korea
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Seoul, Jan 9 (NationPress) On Thursday, Hyundai Motor Group unveiled plans to invest an astounding 24.3 trillion won ($16.6 billion) in South Korea for the current year, aimed at strengthening its future competitiveness in light of the unpredictable global business landscape.
This annual investment proposal signifies an increase of over 19 percent compared to the previous year's domestic investment of 20.4 trillion won, as stated by the group.
The decision underscores the conviction that ongoing and stable investment is crucial for navigating escalating uncertainties and ensuring the establishment of future growth drivers, according to reports from the Yonhap news agency.
Out of the proposed expenditure, 11.5 trillion won is earmarked for research and development (R&D) initiatives focused on crafting next-generation vehicles and essential technologies. Additionally, 12 trillion won is designated for the transition to electric vehicles (EVs) and the expansion of production facilities, while 800 billion won is allocated for future ventures such as artificial intelligence.
In terms of R&D, the group plans to prioritize the development of more competitive all-electric, software-defined, and hydrogen-powered vehicles to secure a vital growth driver, as noted in the release.
To prepare for the forthcoming EV era, Hyundai Motor aims to enrich its EV portfolio with 21 models by 2030, while its smaller affiliate, Kia Corp., intends to introduce 15 EV models by 2027.
Regarding facility expansion, the automakers will persist in their investments in local plants for EV production, despite a temporary decline in EV sales, the group affirmed.
Kia is set to finalize its Hwaseong EVO Plant, located approximately 40 kilometers south of Seoul, in the latter half of the year to initiate production of electrified purpose-built vehicles (PBVs).
PBVs offer passengers unique, tailored services while traveling, with the potential to function as a restaurant, coffee shop, hotel, or even a clinic and pharmacy, in addition to serving as an urban shuttle.
Hyundai is establishing an EV-exclusive plant in Ulsan, home to the company's primary facilities situated around 305 kilometers southeast of Seoul, aiming to commence production of various EV models early next year, beginning with a large SUV.
The 800 billion won will be invested in boosting the competitiveness of the group’s future projects, which encompass AI and autonomous driving, according to the release.
Last year, the group recorded impressive performances across multiple sectors, bolstered by robust business results. Nonetheless, with unforeseen challenges in the business landscape anticipated to escalate in 2025, the group is actively exploring diverse strategies to tackle uncertainties.
Euisun Chung, the executive chair of the group, recently emphasized the significance of resilience and transformation in his New Year's address to employees, reaffirming Hyundai Motor Group's dedication to continuous advancements and innovation.
