On January 9, Hyundai Motors Group announced an investment of $16.6B in domestic developments to secure future growth as the company struggles with political and economic uncertainties. South Korea’s Hyundai Motor Group includes Hyundai Motors and KIA Corp, ranking third in global vehicle sellers after Toyota Motors and Volkswagen.
Hyundai Motor Group is making its biggest investment ever in South Korea this year, believing that consistent and reliable investments are crucial to overcoming challenges and securing long-term growth in uncertain times.
Hyundai’s $16.7B Investment to Boost Future Growth
Hyundai Motors will use half of the $16.7 billion investment money in research and development of next-generation products, electric vehicles, software-driven cars, hydrogen-powered innovations, and other cutting-edge technologies. The other half is towards upgrading production lines for electric vehicles and new models, while also dedicating a few millions to strategic projects like autonomous driving technology, according to the statement.
Last week, Euisun Chung, the Hyundai Motor Group Executive Chair expressed his concern towards recession and rising global conflicts as potential external risks for the company.
Hyundai’s Stock Update
After the investment news, the share prices of Hyundai Motors and Kia were up by 2.3 percent and 3.8 percent respectively. The broader market was just up by 0.1 percent. Last week, Hyundai and Kia said that they are planning to grow their combined global sales by 2 percent to 7.39 million vehicles in 2025. In 2024, the carmaker group reported a dip in sales and missed their targets.
What’s Ahead for Hyundai Motors Group?
Hyundai Motor plans to expand its electric vehicle (EV) lineup to 21 models by 2030, while its affiliate, Kia Corp., aims to introduce 15 EV models by 2027, preparing for the future of electric mobility. For expansion of production facilities, the group will continue to make investments in EV plants despite of dip in electronic vehicle sales.
Kia plans to complete its Hwaseong EVO Plant, located 40 kilometers south of Seoul, in the second half of the year. This plant will focus on producing electrified purpose-built vehicles (PBVs), which can be customized to serve as a restaurant, coffee shop, hotel, clinic, or pharmacy, in addition to their role as urban shuttles, providing passengers with personalized services during their travels.
In Ulsan, Hyundai is building an EV-only plant, it is the home of Hyundai’s main plant located about 305km Southeast of Seoul. The carmaker aims to begin production of EV models by 2025, starting with a large SUV.
