South Korean automaker Hyundai Motor will invest KRW16.2tr (USD12.8bn) in all-electric and other eco-friendly vehicles, including hydrogen cars, plug-in hybrids, and purpose-built vehicles (PBVs), as reported by Korea Economic Daily on May 25. This is part of the group’s plan of injecting KRW63tr (USD50bn) into its domestic businesses through 2025 to enhance its competitiveness in electrification, robotics, urban air mobility (UAM), and gasoline-powered cars. Three-fifths of the massive investment, or around KRW38tr (USD30bn), will be used to optimize combustion engine vehicles, according to Hyundai. The company estimates that about 80% of its vehicles sold by 2025 will still be powered by combustion engines.

The massive investment came after the South Korean government expanded subsidies for green cars last year. Specifically, the country rolled out plans to shell out KRW1.02tr (USD806.4m) and KRW365.5bn (USD290m) in incentives to 121,000 electric vehicles (EVs) and 15,000 hydrogen vehicles in 2021, with the number of cars subsidized rising by 21.4% and 49.2% YoY, respectively. Hyundai also targets the overseas EV market, announcing a USD5.5bn investment plan this May to establish an EV and battery manufacturing factory in the US. The company considers the US as its key EV market, as the Biden administration aims for 40% to 50% zero-emission vehicle sales in the US by 2030. Hyundai expects its two sub-brands, Hyundai Motor and Kia, to have a combined annual EV sale of 3.23m units by 2030, including 840,000 units in the US. In this case, the company’s share in the global EV market could rise to 12% in 2030 from the current 5%.

Sources:

https://www.kedglobal.com/corporate-investment/newsView/ked202205250011

https://www.bangkokpost.com/business/2056259/south-korea-ups-subsidies-for-eco-friendly-cars-to-speed-up-green-push

https://www.kedglobal.com/electric-vehicles/newsView/ked202205220002