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Hyundai's Ulsan Plant IONIQ 5 Production Line. (Photo: Hyundai Motor Group) |
[Alpha Biz= Kim Jisun] Hyundai Motor Group announced on Thursday its plan to invest KRW 24.3 trillion in South Korea this year.
This amount represents a KRW 3.9 trillion (19%) increase from last year’s KRW 20.4 trillion investment and marks the largest annual domestic investment in the group’s history. Hyundai Motor Group explained that this unprecedented investment is a response to the numerous unexpected business challenges it anticipates this year.
The company emphasized its choice of South Korea as the base to overcome these crises. The investment will be allocated as follows: KRW 11.5 trillion for research and development (R&D), KRW 12 trillion for general capital expenditures, and KRW 800 billion for strategic investments. The R&D budget will focus on enhancing product competitiveness, electrification, software-defined vehicles (SDVs), hydrogen products, and fundamental technology development to secure future capabilities.
Hyundai Motor Group plans to adapt flexibly to changing electric vehicle (EV) demand caused by the "chasm" (a temporary demand stagnation) with hybrid models, next-generation hybrid systems, and extended-range electric vehicles (EREVs). Hyundai Motor aims to establish an EV lineup of 21 models by 2030, while Kia plans to launch 15 EV models, including purpose-built vehicles (PBVs), by 2027.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
