Hyundai Motor Group to Invest 24.3 Trillion KRW This Year for Change and Innovation, the Largest Investment in History
Amid an uncertain domestic and global business environment, Hyundai Motor Group is making a large-scale domestic investment to strengthen its future competitiveness, with a focus on South Korea as a hub for mobility innovation. Hyundai Motor Group announced on the 9th that it plans to invest a record-high 24.3 trillion KRW in South Korea this year. This year's investment is a 19% increase compared to the previous record of 20.4 trillion KRW in 2024, marking an increase of 3.9 trillion KRW. Hyundai Motor Group's decision to make its largest-ever domestic investment this year is based on the judgment that continuous and stable investment is essential to overcome the increasing uncertainties and secure future growth drivers. In his New Year's message this year, Chairman Euisun Chung emphasized the importance of the perspective and attitude needed to face crises, the ongoing transformation and innovation through Hyundai Motor Group's continuous improvement, and the significance of the DNA for overcoming crises. He encouraged employees by saying, "We have always faced crises, overcome them excellently, and emerged stronger after each crisis." Hyundai Motor Group will allocate 11.5 trillion KRW for research and development (R&D), 12 trillion KRW for ongoing investments, and 8 trillion KRW for strategic investments. The R&D investments will be used to secure key future capabilities, including enhancing product competitiveness, electrification, software-defined vehicles (SDV), hydrogen products, and the development of core technologies. Hyundai Motor Group will flexibly respond to changes in electric vehicle demand by leading with high-performance, fuel-efficient hybrid models, next-generation hybrid systems, and extended-range electric vehicles (EREV). Hyundai Motor Group plans to steadily expand the development of new electric vehicle models and accelerate the transition to electrification. Hyundai aims to establish a full lineup of 21 electric vehicle models by 2030, ranging from economy models to luxury and high-performance vehicles. Kia, on the other hand, will complete its full lineup of 15 electric vehicle models, including various purpose-built vehicles (PBV), by 2027. In the SDV (Software-Defined Vehicle) field, the goal is to complete the development of an SDV pace car featuring high-performance electric and electronic architecture for vehicles by 2026 through in-house software development. The project aims to expand this technology to mass-produced vehicles. Ongoing investments will be directed towards expanding production facilities to support the transition to electric vehicles (EVs) and the development of new models, innovating manufacturing technologies, and enhancing infrastructure such as customer experience centers. Hyundai Motor Group will make large-scale investments in the construction of dedicated EV factories this year as well. Last year, Kia launched the Gwangmyeong EVO plant and began production of the small electric vehicle EV3. In the second half of this year, the group plans to complete the Hwaseong EVO plant and start full-scale production of customer-specific PBV electric vehicles. The Hyundai Ulsan dedicated EV factory, currently under construction with the goal of starting operations in the first half of 2026, plans to begin mass production with an electric ultra-large sports utility vehicle (SUV) model, followed by a variety of other vehicle types. Strategic investments will be allocated to enhance the competitiveness of key future businesses, including autonomous driving, software (SW), and artificial intelligence (AI). When classified by business sector, the investment in the finished vehicle sector amounts to 16.3 trillion KRW. In addition to the finished vehicle sector, 8 trillion KRW will be invested in other sectors such as parts, steel, construction, finance, and other businesses to discover new ventures and enhance the competitiveness of core businesses. A Hyundai Motor Group official stated, "To realize humanity's dream of 'safe and free mobility and a peaceful life,' we will continue to secure future growth drivers through active investments, constant improvement of our organizational structure, and changes and innovations, without being shaken by internal and external business environments." ChatGPT를 사용하여 번역한 기사입니다
