Hyundai Motor Group Announces Record $16.6 Billion Investment in South Korea

AFP | Seoul

Email : editor@newsofbahrain.com

Hyundai Motor Group has unveiled an ambitious investment plan for 2024, pledging a record 24.3 trillion won ($16.6 billion) to bolster domestic operations and secure future growth amid global economic uncertainties. This marks a 19% increase from last year’s investment of 20.4 trillion won, the company announced on Thursday.

The investment, designed to enhance competitiveness and resilience, will focus on three key areas: next-generation vehicle research and development (R&D), the electric vehicle (EV) transition, and future technology ventures like artificial intelligence (AI).

Investment Breakdown

R&D Activities: 11.5 trillion won will be allocated to developing core technologies and next-generation vehicles, including all-electric, software-defined, and hydrogen-powered models.
EV Transition and Production Expansion: 12 trillion won will support the expansion of EV production facilities and the introduction of new EV models.

Future Businesses: 800 billion won is earmarked for areas like AI and autonomous driving to enhance future competitiveness.
Advancing EV Technology

Hyundai Motor Group is committed to strengthening its EV lineup, aiming for 21 models by 2030. Kia Corp., a Hyundai affiliate, plans to launch 15 EV models by 2027. Despite a temporary slowdown in global EV sales, Hyundai will continue investing in local EV production facilities.

Hyundai is building an EV-only plant in Ulsan, about 305 kilometers southeast of Seoul, with production set to begin next year, starting with a large SUV. Kia, meanwhile, plans to complete its Hwaseong EVO Plant, located 40 kilometers south of Seoul, in the second half of this year. The facility will produce purpose-built vehicles (PBVs), which are custom-designed for services like restaurants, clinics, and urban shuttles.

Future-Focused Ventures

In addition to EV advancements, Hyundai will invest in AI-driven technologies and autonomous driving capabilities. The group aims to solidify its position as a leader in innovative mobility solutions while navigating the increasingly competitive automotive landscape.

Resilience Amid Challenges

Euisun Chung, executive chair of Hyundai Motor Group, emphasized the importance of resilience and transformation in his New Year’s address, highlighting the group’s commitment to continuous improvement and innovation. “Consistent and stable investment is crucial for overcoming uncertainties and securing future growth drivers,” Chung said.

The investment announcement underscores Hyundai’s strategic approach to building on last year’s strong business performance while preparing for potential challenges in 2025.

With its record-breaking investment, Hyundai Motor Group aims to lead the global transition to sustainable and innovative mobility, reinforcing South Korea’s position at the forefront of automotive and technological advancements.