Hyundai pledges to spend $18 billion on the transition to electric vehicles
The business stated that it anticipates having 31 EV models throughout its family of brands by the year 2030.
To enhance the manufacture of electric vehicles, Hyundai Motor Group has committed to spending over 24 trillion won ($18.2 billion) by 2030.
According to a statement sent via e-mail on Tuesday, the group, which also set a goal of becoming one of the top three EV manufacturers in the world, intends to increase its annual output of electric cars in Korea to 1.51 million units by the end of this decade, or about 40% of the estimated global EV production of 3.64 million.
Hyundai Motor Group is made up of Hyundai Motor Co., Kia Corp., the upscale Genesis brand, and Hyundai Mobis Co., which handles parts and services.
Hyundai stated that it anticipates having 31 EV cars throughout its family of brands by the year 2030. It was also mentioned that Kia would construct a new factory in Hwaseong, a city south of Seoul, to produce specially designed electric vehicles. The EV9, a three-row electric SUV from Kia, will go on sale in Korea later this year, while the Ioniq 7 from Hyundai will go on sale in 2024.
The announcement made on Tuesday is consistent with what Hyundai has previously stated regarding investments in a greener future. The introduction of at least 17 battery-powered EVs by 2030, together with 14 from Kia, has been previously discussed in detail by Hyundai and Genesis. These plans should be a "major facilitator" to the company's aim of 3.5 million annual EV sales in 2030.
Also still figuring out how to deal with US President Joe Biden's Inflation Reduction Act, which mandates that automakers develop EVs in the US in order to qualify for subsidies, are battery manufacturers and automakers in Korea.
Hyundai has lobbied US officials for changes to the bill because it does not yet have an operational EV plant in the US. Little changed on that front since the most recent IRA guidance was released earlier this month.
South Korean President Yoon Suk Yeol was present at the groundbreaking ceremony for the Hwaseong facility sponsored by Hyundai on Tuesday.
According to a second statement from the government, Yoon's administration will release a package of support for Korea's EV industry in the first half of the year, including financial assistance and investments in the R&D of auto parts. According to the presidential office, South Korea intends to become a "Asia hub" for the manufacture of EVs worldwide.