Hyundai Motor Group, the parent company of Hyundai Motor and Kia, has announced a significant investment of 68 trillion won ($51 billion) over three years in South Korea. This investment is aimed at bolstering the company's electric vehicle (EV) production and new mobility initiatives.
More than half of the investment, amounting to 35.5 trillion won, will be dedicated to establishing new research and development infrastructure and assembly lines for EVs. Hyundai's global Chief Operating Officer, Jose Munoz, emphasized the company's commitment to electrification and its dedication to the United States market.
In addition to the investment in South Korea, Hyundai has previously announced a $12.6 billion investment in Georgia for new EV and battery manufacturing facilities. This investment underscores Hyundai's ambitious plans to expand its EV production capacity.
Hyundai's investment strategy stands in contrast to some other established automakers, who have recently slowed their EV production plans and shifted their focus to hybrid models or shareholder returns. Hyundai, however, remains committed to its electrification goals while maintaining flexibility in its approach.
The company showcased its 2025 Tucson SUV at the New York auto show, which will feature both hybrid and plug-in hybrid versions. Hyundai also plans to begin producing EVs in Georgia in October to qualify for tax credits under the Inflation Reduction Act.