Hyundai Motor Group has unveiled plans to invest a record 24.3 trillion won ($16.65 billion) in South Korea this year, representing a 19% increase in domestic investment compared to the previous year. This investment is aimed at securing the company’s future growth amidst economic and political uncertainties.
The group, which includes Hyundai Motor and Kia Corp, is the third-largest vehicle manufacturer globally, behind Toyota and Volkswagen. The planned investment includes 11.5 trillion won for research and development on next-generation products, electrification, software-defined vehicles, hydrogen fuel technology, and other innovations.
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Additionally, Hyundai will allocate 12 trillion won for regular investments such as upgrading production lines for electric vehicles and new models, and around 800 billion won for strategic investments, including autonomous driving technologies.
Despite facing external challenges like a potential recession and geopolitical conflicts, Hyundai emphasizes that this large-scale investment is vital for future growth.
Following the announcement, shares of Hyundai Motor and Kia rose by 2.3% and 3.8%, respectively. The company is targeting a 2% increase in global sales, aiming for 7.39 million vehicles in 2025.
This comes amid a drop in South Korean consumer sentiment and increased uncertainty due to political instability in the country and potential trade tariffs from the U.S. under President-elect Donald Trump.
