Hyundai announced a huge EV investment with the aim of making 3.64m EVs by 2030.
Hyundai Motor Group, one of the world’s largest automobile manufacturers, has announced a massive investment of 24 trillion won (US$18.14 billion) in South Korea’s electric vehicle (EV) industry through 2030. This move is aimed at expanding the group’s presence in the rapidly-growing EV market, which is expected to dominate the global automotive demand in the long term.
The investment plan by the group, which comprises Hyundai Motor Co, Kia Corp and Hyundai Mobis Co Ltd, comes as President Yoon Suk Yeol attended a groundbreaking ceremony for Kia’s first designated EV plant. The new plant, which is the auto group’s first in the country in almost three decades, is set to begin production in 2025.
The auto group plans to expand annual EV production in Korea to 1.51 million units and global volume to 3.64 million units by 2030. This would mark a significant boost from its current production levels.
Kia has announced that it will invest around 1 trillion won in the plant and plans to produce 150,000 units in the first full year, with the potential to expand in line with future market conditions.
This investment is a part of the South Korean government’s broader plan to encourage domestic automakers to invest in EVs. President Yoon has pledged to take comprehensive measures in the first half of this year to help South Korea’s auto industry better prepare for the transformation to the “vehicles of the future”.
The government also plans to expand tax benefits for domestic EV facility investment, which is expected to result in a five-fold boost in production capacity by 2030.
This investment is in line with Hyundai’s long-term strategy to position itself as a major player in the global EV market. Last year, the South Korean auto group announced its plans to invest over $10 billion in the United States by 2025 to enhance collaboration with U.S. firms in advanced technology. This includes a $5.5 billion investment in new EV and battery facilities in the state of Georgia.
The announcement of this investment has also had a positive impact on the stock market. Shares of Kia and Hyundai Motor closed up 4.9% and 3.3% on Tuesday.
