Hyundai Motor plans to invest 6.8 billion won to accelerate EV development

Hyundai Motor plans to invest 6.

• Hyundai Motor’s core area of investment into Korea is electric vehicles.
• The investment plans to recruit 80,000 people to help the company improve its R&D capabilities and expand productivity, among other things.

The KRW 68 trillion investment plan will enable Hyundai Motor Company to accelerate its shift to sustainable and clean energy technologies and its entry into the electric mobility market. In addition, the new recruits will help the company enhance its R&D capabilities, expand its production capacity and strengthen its sales and service network.

68 trillion won major investment areas

Hyundai Motor announced a major hiring and investment plan on 27 March, investing KRW 68 trillion in Korea from this year until 2026, with an average annual investment size of about KRW 22.7 trillion, an increase of 30 per cent from KRW 17.5 trillion in 2023. In terms of investment areas, Hyundai Motor Group will invest 31.1 trillion won in R&D, most of which is related to the EV business, such as EV transition, software-defined vehicles (SDV), and internalisation of battery technology. KRW 35.3 trillion and KRW 1.6 trillion will be invested in liquid and strategic investments, respectively. According to the industrial classification, the vehicle division (including future mobility projects) accounted for 63% of the total investment, or approximately KRW 42.8 trillion. In addition, the group will further increase its investment in building a hydrogen energy ecosystem and investing in areas such as advanced air mobility (AAM) and robotics.

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And the plan will hire 80,000 people, which Hyundai says will create more than 198,000 jobs. Specifically, the Hyundai Motor Group plans to hire 44,000 people for future new businesses such as electric vehicles and the software-centric smart car segment, 23,000 people for new car development and global operations in existing businesses, and 13,000 older employees, including retirees. The new recruits will help the company enhance its R&D capabilities, expand production capacity, and strengthen its sales and service network.

Also read: Hyundai’s Ioniq 5 N electric vehicle coming in March 2024

Helping Hyundai get better

Hyundai Motor Group’s investment plan demonstrates its determination in wanting to enter the electric vehicle sector. This huge investment will breathe new life into the Korean automotive industry and lay a solid foundation for it to maintain its competitive edge in the global market. This is of strategic importance not only for Hyundai Motor Group itself, but also for the sustainable development and technological innovation of the Korean automotive industry. As the electric vehicle market continues to grow, Hyundai Motor Group’s investment initiative will further propel Korea to become a key player in the global electric vehicle sector.