Hyundai Motor Group (HMG) announced this week it is lifting its planned investments in South Korea by 19% to KRW24.3trn (US$16.6bn) in 2025, the largest annual increase ever in its home base, as it looks to step up new technology development and manufacturing to meet the challenges of a rapidly evolving global automotive market.
HMG, South Korea’s largest automotive group comprising Hyundai Motor and Kia Corporation, made public its investment plans after its executive chairman, Chung Euisun, urged the company’s executives and other staff to “guard against pessimism” amid the country’s current political turmoil and sluggish economic performance.
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HMG said it plans to invest KRW11.5trn of the total amount in research and development (R&D) for next-generation mobility technologies, including electrification, hydrogen systems and software-defined vehicles (SDVs).
Most of the remainder, or KRW12trn, will be invested in switching production capacity to electrified vehicles and building related infrastructure, while KRW800bn has been earmarked for strategic investments in autonomous driving and artificial intelligence (AI) technologies.
HMG said it aims to overcome the short-term weakness in global BEV demand by stepping up development and production of hybrid models, with a focus on improved performance and fuel efficiency. It said it is currently developing a next-generation hybrid system for extended-range electrified vehicles (EREVs).
The company said it will continue to focus on bringing BEVs to market, with a total of 21 models to be released by Hyundai Motor by 2030, covering all segments from budget to luxury models. A further 15 models will be released by Kia in the same period, including purpose-built vehicles (PBVs) from 2027.
HMG said it also plans to develop its proprietary SDV software ahead of the launch of its first “pace” model in 2026, ahead of its introduction in mass-production vehicles.
HMG plans to begin operations at Kia’s second dedicated EV plant in Hwaseong in the second half of 2025, which will also produce PBVs, following the start of operations at Kia’s dedicated EV plant in Gwangmyeong in 2024.
Hyundai Motor is currently building a dedicated EV plant in Ulsan, which is scheduled to be completed in the first half of 2026.
