Hyundai Motor Group Plans Record Investment in South Korea Amid Economic Uncertainties
Key Ideas
  • Hyundai Motor Group to increase domestic investment by 19% to a record high of 24.3 trillion won ($16.65 billion) in 2025 to secure future growth.
  • Focus on research and development for next-generation products including electrification, software-defined vehicles, and hydrogen-fueled products.
  • Strategic investments in autonomous driving technologies and production line adjustments for electric vehicles and new models.
  • Despite economic and political uncertainties, Hyundai and Kia aim to grow global sales by 2% to 7.39 million vehicles in 2025.
Hyundai Motor Group announced its plans to significantly boost domestic investment by 19% to a record high of 24.3 trillion won ($16.65 billion) in 2025. This investment aims to ensure future growth for the company amid economic and political uncertainties. The planned investment includes a substantial portion allocated for research and development, focusing on next-generation products such as electrification, software-defined vehicles, and hydrogen-fueled products. Additionally, strategic investments in autonomous driving technologies and production line adjustments for electric vehicles are part of the investment strategy. Despite facing challenges such as a potential recession and global conflicts, Hyundai Motor Group remains positive about its outlook. The group's Executive Chair, Euisun Chung, highlighted the importance of continuous and stable investments to overcome crises and secure future growth engines. Hyundai and Kia, which rank third in global vehicle sales behind Toyota Motor and Volkswagen, are aiming for a 2% growth in their combined global sales to reach 7.39 million vehicles by 2025. The announcement of increased investment led to a positive market response, with shares in Hyundai Motor and Kia rising in early trade. The company's decision to start production in a new factory in the U.S. state of Georgia reflects strategic planning to leverage tax credits offered by the Biden administration. Despite challenges like the drop in South Korea's consumer sentiment and global political uncertainties, Hyundai Motor Group remains committed to its growth trajectory and innovation in the automotive sector.
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