Hyundai Motor to invest $1.1 bil. in Brazil's auto industry by 2032

Hyundai Motor Group Executive Chair Chung Euisun, left, discusses its partnership with Brazil during a meeting with Brazilian President Luiz Inacio Lula da Silva at the latter’s office in the country’s capital of Brasilia, Thursday. Courtesy of Hyundai Motor Group

Hyundai Motor will invest $1.1 billion (1.46 trillion won) in Brazil by 2023, focusing on the advancement of eco-friendly future mobility and relevant technological development, the automaker said Friday.

As part of its initiative, the automaker committed to align with Brazil's carbon neutrality policy. Hyundai Motor intends to develop eco-friendly vehicles tailored specifically for the local market and establish a dedicated division for its hydrogen business in the region.

Hyundai Motor Group Executive Chair Chung Euisun convened with Brazilian President Luiz Inacio Lula da Silva on Thursday to explore avenues for enhancing their collaboration. Jose Munoz, the global chief operating officer for Hyundai Motor, participated in the meeting alongside the country's leader and other prominent politicians.

Brazil is a pivotal sales region for Hyundai Motor, propelled by the demographic growth potential within the area. The automaker reported sales of over 187,800 vehicles there in 2022 alone, which represents nearly 10 percent of the country's automotive market share.

“Hyundai Motor Group is pushing ahead with rapid electrification strategies to achieve net-zero emissions, with the focus on electric and hydrogen vehicles,” Chung said. “Hydrogen energy is the key means to deal with climate change and supplement our electrification.”

Hyundai Motor’s subsidiary in Brazil and local partners there will team up for the mega-investment project.

“Hyundai Motor is expanding its presence in Brazil, and the company will invest in the eco-friendly hydrogen and relevant technological development in Brazil,” the Brazilian president said.

The Brazilian government has committed to a substantial reduction in greenhouse gas emissions, aiming for a 50 percent decrease by 2030 compared to levels from 25 years prior. Furthermore, it has outlined an ambitious long-term goal of achieving carbon neutrality by 2050.

Last year, the country announced plans to offer tax cuts and subsidiaries worth 5.1 trillion won for global automakers investing in Brazil’s decarbonization.

Chung also explained the automaker's vision for advanced air mobility (AAM) during the meeting, as part of its efforts to preemptively secure technological competitiveness for the future mobility solution. Last month, the automaker’s AAM subsidiary unveiled a concept of its latest S-A2 all-electric passenger aircraft whose commercial debut is slated for 2028 in Korea and the United States.

The head of Hyundai Motor Group also met with a group of ranking officials from Brazilian universities, and exchanged their views on how to elevate ties between Hyundai and researchers there.

“Hyundai Motor Group will help relieve energy inequality with its hydrogen business, and hopes to lead Brazil’s eco-friendly energy market under our close collaboration with the Universidade de Sao Paulo,” Chung said.