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Hyundai plans $16.6 billion investment in Korea for 2025, half earmarked for R&D

Published: 09 Jan. 2025, 09:25 Updated: 09 Jan. 2025, 17:26

SARAH CHEA
[email protected]

Hyundai Motor Group Executive Chair Euisun Chung speaks about the company's plans at the 2025 New Year's event held Jan. 6 at Hyundai Motorstudio Goyang in Goyang, Gyeonggi. [HYUNDAI MOTOR GROUP]

Hyundai Motor Group will invest a record 24.3 trillion won ($16.6 billion) in Korea in 2025, with nearly half allocated to research and development (R&D) to advance the domestic mobility sector.

The Korean auto group announced the investment on Thursday, marking a 19 percent increase from its previous record of 20.4 trillion won in 2024.

The amount comprises investments from subsidiaries of Hyundai Motor Group including automakers Hyundai Motor and Kia as well as auto parts maker Hyundai Mobis.

Kia's auto plant in Gwangmyeong, Gyeonggi. [YONHAP]

Approximately 11.5 trillion won will be allocated to R&D, focusing on key technologies such as electrification, hydrogen and software-defined vehicles (SDVs).

Hyundai Motor plans to offer 21 EV models by 2030, while Kia aims to launch 15 models, including purpose-built vehicles (PBVs), by 2027.

The automaker said it will invest in hybrid vehicles and Extended-Range Electrified Vehicles (EREVs) to tackle slowing EV demand.

An EREV uses an electric motor with a petrol engine that serves only to power the battery. The hybrid car is designed to provide a longer driving range than traditional electric cars — in Hyundai's case, more than 900 kilometers (560 miles) on a single charge.

Hyundai previously said it would launch its first EREV in 2027.

The group described the bold investment as essential for navigating uncertainty and securing future growth engines, stating, “Continuous and stable investment is crucial to overcoming crises and driving future growth.”

Around 12 trillion won will be put into boosting the infrastructure of EVs. Kia's EV facility in Gwangmyeong, Gyeonggi, recently started producing EV3s. Its EV-dedicated facility in Hwanseong, Gyeonggi, is slated to start producing PBVs in the second half.

Some 800 billion won will be used to advance key technologies in future mobility such as automated driving, software and artificial intelligence.

Classifying the investment by industry sectors, some 16.3 trillion won, or 67 percent, will go to automobile areas which also includes building chargers for EVs and hydrogen cars. The remaining 8 trillion won will be spent on auto parts, construction, finance and logistics.

Kospi-listed Hyundai Motor shares fell 0.23 percent to 213,000 won on Thursday while Kia rose 2.3 percent to 103,300 won and Hyundai Mobis inched up 0.8 percent to close at 253,000 won.

BY SARAH CHEA [[email protected]]