Why Hyundai's Spending Billions to Boost EVs & Hydrogen Tech

Global automotive powerhouse Hyundai Motor Group has announced an unprecedented US$16.6bn investment in EVs and hydrogen-fuelled products.

The strategic move by the manufacturer, ranked third in global vehicle sales behind Toyota Motor and Volkswagen, reflects its sharp focus on sustainability and innovation.

Hyundai's plan includes a 19% increase in domestic investment as Hyundai aims to secure long-term growth amidst what it describes as a global “crisis.”

The crisis in question? the mounting economic and political instability we currently face.

Breaking down the investment 

The record-breaking investment is divided into three key manufacturing areas: 

• Research & development

Hyundai is allocating US$7.84bn to advance next-generation technologies. These include electrification, software-defined vehicles, hydrogen-powered solutions and autonomous driving systems.

• Production line adjustments

A further US$8.18bn will be spent on reconfiguring production lines to accommodate EVs and new models, ensuring scalability and efficiency for the growing global EV demand.

• Strategic investments

​​​​​​​Approximately US$545m will focus on strategic initiatives such as autonomous driving capabilities and other cutting-edge technologies.

“Continuous and stable investments are essential to overcome the crisis and secure future growth engines in the face of growing uncertainties,” the company stated.

A strategy to combat political & economic volatility

Hyundai's announcement comes at a time of significant political and economic volatility, both domestically and internationally.

In South Korea the last few months have been marked by political turmoil. 

President Yoon Suk Yeol's declared martial law before being subsequently impeached, creating an atmosphere of uncertainty.

Internationally, the U.S. Inflation Reduction Act has provided opportunities for automakers to leverage tax credits for domestically produced EVs.

Opportunities which many may embrace in the shadow of President-elect Donald Trump’s tariff threats.

Hyundai is one automotive manufacturer doing so.

The company began production at its new factory in Georgia, USA, last year, ensuring its vehicles qualify for U.S. tax incentives.

Hyundai: securing its position in the automotive market

Industry analysts view Hyundai’s investment as a bold step towards securing its position in the global automotive market.

“Hyundai Motor Company's record US$16.7bn investment in South Korea showcases its commitment to leading the EV revolution and overcoming global challenges," Nish Liyanage, Sales Director at Terrapinn, commented on LinkedIn.

“With plans to enhance EV production, advance autonomous driving technology and expand R&D, the world’s third-largest automaker is setting the stage for a more sustainable future.”

Liyanage highlighted Hyundai’s adaptability, noting its efforts to localise production in the US and explore digital sales channels like Amazon.

“Its vision to streamline online car sales and reduce purchase time to 15 minutes reflects a bold approach to automotive retail,” he added.

Hyundai's manufacturing growth 

Hyundai Motor Group’s strategic moves reflect a desire to maintain and strengthen its 2023 manufacturing growth. 

Here's that growth in numbers: 

• Sales Revenue: US$110.8bn
• Operating Profit: US$10.3bn
• Total Assets: US$192.5bn

Globally, Hyundai’s best-selling models for 2023 were:

1. Tucson: 656,867 units sold
2. Elantra: 401,894 units sold
3. Creta: 327,625 units sold
4. i10: 323,657 units sold
5. Kona: 279,862 units sold

Building a Sustainable Legacy

Hyundai Motor Group’s record-breaking investment lays the foundation for transformative innovation in EVs and hydrogen technology.

By prioritising sustainability and adaptability, the company is positioning itself to lead the global transition to a zero-carbon automotive future.

“Hyundai Motor Company's record US$16.7bn investment in South Korea showcases its commitment to leading the EV revolution and overcoming global challenges.

“With plans to enhance EV production, advance autonomous driving technology and expand R&D, the world’s third-largest automaker is setting the stage for a more sustainable future.

Nish added: “As Hyundai braces for geopolitical pressures, including potential US tariffs, it’s leveraging opportunities like the Inflation Reduction Act, making its EVs eligible for tax credits.

“Localising production in the US, Hyundai's key market and exploring digital sales channels like Amazon further highlight its adaptability and innovative edge.”

He said the strategic shift addresses sluggish domestic demand and positions Hyundai to compete globally with low-cost rivals, adding: “Its vision to streamline online car sales and reduce purchase time to 15 minutes reflects a bold approach to automotive retail.”

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