Hyundai Motor Group is making a big push towards electrification, allocating greater than $16.6 billion to reinforce new applied sciences and electrical autos (EVs) in South Korea. This funding marks the biggest annual dedication within the firm’s historical past. The query now could be whether or not this substantial monetary effort will allow Hyundai to surpass Volkswagen or Toyota in international car gross sales.
On Thursday, Hyundai Motor Group, which incorporates Kia, introduced plans to take a position KRW 24.3 trillion (over $16.6 billion) in South Korea in 2025, a 19% enhance from final yr’s file of KRW 20.4 trillion (about $14 billion). Hyundai highlights the significance of sustained funding to navigate present challenges and foster future development, notably in gentle of a political disaster that emerged just lately when President Yoon Suk Yeol was impeached on December 14. This turmoil has made South Korean shoppers extra hesitant to make vital purchases, impacting demand.
In 2024, Hyundai’s international gross sales skilled a virtually 2% decline, with home gross sales down by 7.5%, though gross sales outdoors Korea remained comparatively secure. To spur development in 2025, the automaker is specializing in accelerated expertise growth, electrification, and software program innovation.
Hyundai’s funding technique for this yr emphasizes exploring new enterprise areas, advancing next-generation merchandise, and securing key applied sciences. This features a deliberate KRW 11.5 trillion ($7.9 billion) allocation in direction of analysis and growth to reinforce product competitiveness and bolster electrification efforts.
Moreover, Hyundai is ready to take a position one other KRW 12 trillion ($8.2 billion) to increase home EV manufacturing capabilities and enhance manufacturing effectivity. The corporate intends to assemble EV-exclusive amenities in 2025, following Kia’s initiation of manufacturing at its new Gwangmyeong EVO Plant and the upcoming mass manufacturing of electrical vans.
Hyundai’s devoted EV plant in Ulsan is predicted to open within the first half of 2026, aiming to mass-produce an ultra-large electrical SUV. In the US, Hyundai has launched a brand new $7.6 billion EV plant in Georgia, which just lately produced the up to date 2025 Hyundai IONIQ 5, that includes enhanced vary, design, and compatibility with Tesla Supercharger ports.
The automaker can be engaged on its first three-row electrical SUV, the IONIQ 9, set to start manufacturing in Georgia in early 2025, aiming to launch within the U.S. and Korea shortly thereafter. With a number of Hyundai fashions now qualifying for a $7,500 federal tax credit score, the corporate hopes to realize a aggressive edge.
Furthermore, Hyundai has turn out to be the primary automaker to supply car gross sales by way of Amazon within the U.S., permitting clients to buy the brand new 2025 IONIQ 5, IONIQ 6, and Kona Electrical immediately from Amazon’s platform.
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