Hyundai Motor Group announced today that it will invest a record 24.3 trillion won (approximately $24.3 billion) in South Korea this year, as part of its efforts to strengthen its future competitiveness amid a volatile global business environment.
The investment marks a 19% increase from the previous record of 20.4 trillion won set in 2024, reflecting the group's commitment to driving innovation in the mobility sector and securing its leadership position in the global automotive market.
Hyundai attributed the significant investment to the need for sustained and stable investment to overcome growing uncertainties and secure future growth engines. Despite achieving remarkable performance and growth in various areas last year, the group faces unprecedented challenges in the global market this year, requiring proactive measures to navigate through these complexities.
Chairman Chung Eui-sun emphasized the importance of resilience and innovation in his New Year's message, urging employees to embrace challenges as opportunities and drive continuous transformation. He highlighted Hyundai's history of overcoming crises and emerging stronger.
The group's decision to invest heavily in South Korea is also seen as a strategic move to enhance communication and trust with various stakeholders, including customers, shareholders, and the market. By transparently communicating its long-term investment plans and growth aspirations, Hyundai aims to boost the value of its key subsidiaries and support the business plans of its affiliated companies.
Investment Highlights:
Research and Development (R&D): 11.5 trillion won will be allocated to enhance product competitiveness and develop core future technologies such as electrification, Software-Defined Vehicles (SDVs), hydrogen products, and fundamental technologies.
Capital Expenditure: 12 trillion won will be invested in expanding production facilities for electric vehicles and new models, improving manufacturing technology, and enhancing customer experience centers.
Strategic Investments: 800 billion won will be directed towards bolstering competitiveness in future businesses such as autonomous driving, software, and artificial intelligence.
Hyundai plans to focus on developing next-generation products, securing core technologies, and accelerating the transition to electrification and SDVs. Key areas of investment include:
Electrification: Expanding its electric vehicle lineup to 21 models by 2030 and 15 models by 2027 for Kia, covering various segments from economy to luxury and high-performance.
SDVs: Completing the development of a high-performance electric/electronic architecture for SDV pace cars by 2026 and applying it to mass-production vehicles.
Manufacturing: Constructing new EV-dedicated plants, including Hyundai's Ulsan EV-only plant and Kia's Hwaseong EVO Plant.
Hydrogen: Accelerating the development of next-generation fuel cell systems and hydrogen buses/trucks, and building a hydrogen ecosystem.
New Mobility: Expanding into new mobility devices, robotics, and other emerging businesses.
Beyond the automotive sector, Hyundai will invest 8 trillion won in components, steel, construction, finance, and other businesses to foster innovation and competitiveness.
Hyundai Motor Group aims to solidify its position as a global leader in the mobility industry through continuous investment, innovation, and adaptation to changing market dynamics.
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