Hyundai Motor and affiliate Kia Motors Wednesday announced plans to invest 4.1 trillion won (US$3.28bn) by the end of 2013 to develop fuel-efficient cars and cut carbon emissions.

The group said it would spend 2.2 trillion won to develop and produce hybrid and hydrogen fuel cell vehicles, according to AFP.

Another 1.4 trillion won would be used to develop fuel-saving engines, transmissions and light materials, the Hyundai-Kia Automotive Group said.

The remaining 500 billion won would be spent on cutting greenhouse gas emissions by 6% from car plants.