The world’s third-largest auto group goes all-in to guide the shift to electrification. With plans to pour a document over $16.6 billion into advancing new tech and EVs in South Korea, Hyundai is laying the groundwork for the longer term. Can the brand new funding assist it surpass Volkswagen or Toyota in international gross sales?
Hyundai Motor Group, together with Kia, introduced on Thursday that it’s going to “make the most important annual funding in its historical past in Korea this yr.”
In 2025, Hyundai plans to speculate KRW 24.3 trillion, or over $16.6 billion, in its dwelling market. That is up 19% from the earlier document of KRW 20.4 trillion (about $14 billion) set in 2024.
Hyundai mentioned the rationale behind the document funding “is as a result of it believes that steady and secure funding is crucial to beat the disaster and safe future development engines.” A giant a part of the disaster Hyundai is referring to began final month.
After President Yoon Suk Yeol declared martial regulation and was later impeached on December 14, South Korea plunged right into a political disaster. Korean patrons are hesitant to make huge purchases, which has slowed demand.
Hyundai’s international gross sales slipped practically 2% in 2024. Though gross sales outdoors of Korea have been roughly flat, home gross sales have been down 7.5%.
To spice up development in 2025, the auto large is pouring sources to speed up the event of latest tech, EVs, and software program.
Hyundai is doubling down on new EVs and tech
Hyundai mentioned its focus this yr is “on new enterprise areas akin to improvement of next-generation merchandise, securing key new applied sciences, and accelerating electrification and SDV.”
The corporate will make investments KRW 11.5 trillion ($7.9 billion) into R&D “to safe key future capabilities akin to enhancing product competitiveness, electrification, SDV, hydrogen merchandise, and improvement of unique applied sciences.”
One other KRW 12 trillion ($8.2 billion) will probably be used to ramp up home EV manufacturing and enhance manufacturing. Hyundai plans to proceed making large-scale investments to construct EV-only amenities in 2025.
Final yr, Kia started manufacturing at its new Gwangmyeong EVO Plant, the place it builds the brand new EV3. Later this yr, Kia will begin mass manufacturing of its PBV electrical vans.
Hyundai will open its devoted EV plant in Ulsan within the first half of 2026. The corporate plans to mass produce EVs, beginning with an ultra-large electrical SUV.
Within the US, its most essential market, Hyundai simply opened its new $7.6 billion EV plant in Georgia. The primary car to roll off the meeting line was the upgraded 2025 Hyundai IONIQ 5, which now has extra vary, higher fashion, and a NACS port for charging at Tesla Superchargers.
Hyundai will start constructing its first three-row electrical SUV, the IONIQ 9, in Georgia in Q1 2025. The bigger electrical SUV will probably be accessible within the US and Korea within the first half of 2025.
With a number of Hyundai Motor, together with Kia and Genesis, EVs now eligible for the $7,500 federal tax credit score, can Hyundai acquire a bonus over the competitors?
Hyundai can also be the primary firm to promote its automobiles on Amazon within the US. The brand new 2025 IONIQ 5, IONIQ 6, and Kona Electrical can now be bought straight on Amazon’s web site.
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