Hyundai to invest 63 trillion won in domestic businesses by 2025
Hyundai Motor Group Chairman Euisun Chung / Yonhap
Korea's Hyundai Motor Group said Tuesday it will invest 63 trillion won ($49.8 billion) in its domestic businesses by 2025 in the latest move to become a future mobility systems and solutions provider.
Hyundai Motor, Kia and Hyundai Mobis will make the investments in their domestic production facilities, electrification, autonomous driving and other next-generation technologies to serve as the "hub of the group's future businesses," the group said in a statement.
The three companies are major affiliates of the world's fifth-biggest automotive group by sales.
The latest move came just days after Hyundai Motor Group Chairman Euisun Chung announced investments of a total of $10.54 billion to build a dedicated electric vehicle plant in the U.S. state of Georgia and to develop robotics and autonomous driving technologies in the United States.
Hyundai Motor, Kia and Hyundai Mobis will spend a combined 16.2 trillion won out of 63 trillion won to gain a competitive edge over rivals in all-electric and environment-friendly vehicles, the statement said.
Kia plans to build a purpose-built vehicle plant at its Hwaseong plant, just south of Seoul, by 2024, with an aim to start production in late 2025.
The three companies also plan to inject 8.9 trillion won in future growth drivers, such as robotics, advanced air mobility, autonomous driving, and artificial intelligence.
The three will inject the remaining 38 trillion won into R&D activities and performance improvement of Hyundai and Kia's existing combustion engine vehicles.
Eight out of 10 vehicles sold by Hyundai and Kia will still be powered by combustion engines in 2025, the group said. (Yonhap)