Hyundai Motor Group employee at its manufacturing plant. (HMG)
Hyundai Motor Group unveiled Tuesday another set of mega investment plans, this time focusing on the local market. Introducing a 63 trillion won ($52.6 billion) plan, the automaker said it would work with its subsidiaries Kia and Hyundai Mobis to turn Korea into a hub of its future mobility business. The investment will be implemented over the next three years.
According to the automaker, which controls the country’s top two automotive brands -- Hyundai Motor and Kia -- as well as auto parts and software maker Hyundai Mobis, it will be laser-focused on making their products electric and environmentally friendly through hydrogen and plug-in hybrid models, injecting 16.2 trillion won by 2025.
The automaker announced last week that it plans to inject 21 trillion won to quadruple EV production locally by establishing an EV-dedicated factory inside a Kia plant by 2030. This project is included in the investment plan.
Hyundai Motor Group also made it clear that it would continue to invest in combustion engine models. Some 38 trillion won will be put to expanding combustion model production facilities, based on the estimate that 80 percent of its total sales are expected to come from combustion models in 2025. The group said such investment will not only lessen the burden on customers who consider EVs as more expensive options, but also give time for partnering auto parts makers to prepare for a transition towards electrification.
“Based on investment in the Korean market, we will strengthen global business competitiveness. We will lead the paradigm shift of the automotive industry in Korea and continue to offer differentiated products and satisfactory service to our customers,” a Hyundai Motor Group official said.
By Kim Da-sol (firstname.lastname@example.org