Hyundai devotes 77 trillion won to eco-friendly expansion, confronting tariffs and electric vehicle decline
Hyundai Aims for a Greener Future with Global Expansion
South Korean automaker Hyundai has announced ambitious plans to sell 5.55 million vehicles globally by 2030, with 60% of those being eco-friendly models. As part of this strategy, the company will invest a significant sum over the next five years.
The company's US investment for the period 2025-2028 will be 15.3 trillion won, an increase of 3.7 trillion won. This investment will be allocated towards Research & Development (R&D), facilities, and strategic projects. Specifically, 30.9 trillion won will be spent on R&D, 38.3 trillion won on facilities, and 8.1 trillion won on strategic projects.
One of the key strategic projects is the construction of a new electric vehicle (EV) factory in Georgia, USA. This factory, which will have a capacity of at least 200,000 units, will cost $2.7 billion and will focus on the production of electric and hybrid vehicles.
Hyundai's commitment to sustainability extends beyond EVs. The company also plans to introduce next-generation hydrogen fuel cell vehicles.
In North America, Hyundai expects eco-friendly sales to jump from 30% this year to 77% by 2030, making it the largest market for the company. To meet this demand, Hyundai plans to add 1.2 million units of capacity. This includes boosting output at its Georgia Metaplant to 500,000 units, expanding its India plant to 250,000 units, and launching a new EV plant in Ulsan with 200,000 units of capacity.
Hyundai's luxury brand, Genesis, will also join the eco-friendly revolution, with the introduction of its first rear-wheel-drive hybrid next year.
President and CEO Jose Munoz stated that Hyundai faces a period of uncertainty but aims to transform into a future mobility leader by expanding global sales, securing production bases, and diversifying its portfolio. To this end, Hyundai plans to invest 77.3 trillion won ($56 billion) over the next five years, 7 trillion won more than its earlier target of 70.3 trillion won.
Hyundai also plans to introduce region-specific EVs. For example, the Ioniq 3 compact EV is expected to launch in Europe in 2026, while two new models will be introduced in China, and a compact electric SUV will be launched in India by 2027.
In addition, Hyundai aims to double its hybrid lineup to 18 models by 2030. The company is also developing an extended-range EV with a smaller, lower-cost battery for launch in 2027.
Hyundai will also focus on software development. The company plans to complete its software-defined vehicle project by 2026, with its new "Pleioth Connect" infotainment system rolling out next year. Furthermore, Hyundai plans to expand local production and build a robotics ecosystem in the US.
In conclusion, Hyundai is making significant strides towards a greener future. With its focus on EVs, hydrogen fuel cell vehicles, and hybrid vehicles, the company is positioning itself as a leader in sustainable mobility. The company's investments in R&D, facilities, and strategic projects, along with its expansion into new markets, are evidence of its commitment to this vision.
