Hyundai Motor, Kia to invest 18 trillion won into software development

Industry

Published: 12 Oct. 2022, 17:46

Hyundai Motor, Kia to invest 18 trillion won into software development

From left: Ahn Hyung-ki, vice president of Hyundai Motor Group's electronics development group, Paul Choo, executive vice president of Hyundai Motor Group's electronics and infotainment development center, Park Chung-kook, president of Hyundai Motor Group's R&D division, Jin Eun-sook, executive vice president Hyundai Motor Group's ICT innovation division and Chang Song, president of Hyundai Motor Group's transportation-as-a-service division talk at an online press conference Wednesday. [HYUNDAI MOTOR GROUP]

Hyundai Motor and Kia will invest a total of 18 trillion won ($12.6 billion) into software development by end of 2030, aiming for all of its cars to be software defined vehicles (SDVs) by 2025.

Hyundai Motor Group announced at an online press conference that part of the 18-trillion-won investment will be used to enhance software used for its SDV, connected-car and autonomous driving technologies.

SDVs are cars with an over-the-air (OTA) system, which is wireless technology used to update the software of cars and add the latest features.

The money will also be used to invest in tech start-ups and research centers and recruit various IT personnel from abroad.

OTA systems will be installed in Hyundai Motor Group’s cars delivered in 40 countries where it has wireless network connections starting from 2023, which it hopes will allow all its cars to be SDVs by 2025.

Hyundai Motor Group currently has wireless network connections in countries such as Korea, the United States, Canada, China and India, as well as countries in Europe.

With more SDVs, Hyundai Motor Group says it will be able to frequently update functions of existing cars to satisfy the rapidly changing demands of customers. Users will also be able to purchase optional functions, downloading them to their cars whenever they want.

“Sharing a standardized software platform will make technological developments easier, which also enhances price competitiveness,” said Park Chung-kook, president of Hyundai Motor Group’s R&D division. “If the paid software downloading service becomes widely accepted, that will create new profits and even change our profit structures.”

Park says the change will allow the company to cut production costs by around 20 percent.

Hyundai Motor Group also plans to open its own research center, named the Global Software Center, which will develop software that can be used on its autonomous robotaxi and air mobility vehicles.

BY LEE TAE-HEE [lee.taehee2@joongang.co.kr]