Hyundai will invest KRW68 trillion to boost EV competitiveness

Peng Chen, DIGITIMES Asia, Taipei 0

Credit: AFP

Hyundai Motor Group announced on March 27 that it aims to invest KRW68 trillion (US$51 billion) in South Korea until the end of 2026.

The planned investment is directed at enhancing R&D and production of EVs. The company also plans to recruit 80,000 new employees within three years.

According to the group's announcement, KRW35.3 trillion of the investment will be injected into EV production expansion, new R&D infrastructure, and the group's new headquarters, the Global Business Center.

Hyundai said it will expand its EV portfolio within the group, which includes Kia, to 31 models by 2030. The group's annual EV production in South Korea will grow to 1.51 million.

About 46% of the KRW68 trillion investment will boost Hyundai's vehicle competitiveness and electrification, enhancing the group's software-defined vehicles (SDV) and battery technology.

According to The Korea Economic Daily, Hyundai CEO Chang Jae-hoon said recently that the company plans to set up an advanced vehicle platform headquarters to drive SDV projects.

Hyundai said about KRW1.6 trillion will be injected into strategic investments, including software and autonomous driving technology. In addition, it aims to hire 80,000 new employees by the end of 2026 for electrification, SDV, carbon neutrality, and other projects.

In 2023, Hyundai and Kia sold more than 4.2 million cars, a 6.9% increase from 2022. The groups said the launch of new gasoline models and expansion of its EV lineup facilitated the sales.

In the US, one of Hyundai's most critical markets, the automaker sold 85,474 battery EVs last year, according to InsideEVs. The number surpassed those of GM and Ford, representing a 60% growth year-over-year.

The Korea Herald reported that the Hyundai group will finish building its first EV-dedicated factory in Gwangmyeong, South Korea, in the second quarter of 2024. Then, the production of Kia EV3 will follow.

Hyundai started constructing an EV plant in Ulsan, South Korea, in November 2023. The carmaker plans to begin production of affiliate Genesis' electric SUV in the first quarter of 2026.