Hyundai making an R330 billion shift to electric vehicles

Hyundai Motor Group has pledged to spending around $24 trillion (R330 billion) by 2030 to enhance electric car manufacturing.

According to an e-mailed statement Tuesday, the group, which has also set a goal of becoming one of the world’s top three EV makers, plans to increase its annual output of electric cars in Korea to 1.51 million units by the end of this decade, or about 40% of the estimated global EV production of 3.64 million.

Hyundai Motor Group comprises Hyundai, Kia, the luxury Genesis brand, and the Hyundai Mobis parts and servicing business.

Hyundai stated that it intends to offer 31 EV cars across its brands by 2030. Kia will also develop a new facility in Hwaseong, south of Seoul, to produce electrified purpose-built automobiles. Kia is prepared to launch the EV9, a three-row electric SUV, in Korea later this year, while Hyundai expects to launch the Ioniq 7 in 2024.

The declaration on Tuesday mirrors what Hyundai has already stated about investing for a greener future. Hyundai and Genesis had already disclosed plans to deliver at least 17 battery-powered EVs by 2030, plus 14 from Kia, which should be a “huge enabler” in reaching the company’s 2030 goal of 3.5 million annual EV sales.

Korean automakers and battery manufacturers are also attempting to negotiate US President Joe Biden’s Inflation Reduction Act, which compels automakers to construct EVs in the US in order to qualify for subsidies.

Lobbying

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Hyundai staged a groundbreaking ceremony for the Hwaseong facility on Tuesday, which South Korean President Yoon Suk Yeol attended.

Yoon’s administration will release a package of support for Korea’s EV industry in the first half, including financial assistance and investment in auto parts R&D, according to a separate government statement. According to the presidential office, South Korea aspires to become a “Asian hub” for worldwide EV manufacture.