Hyundai Motor Group revealed a plan to invest 24.3 trillion won in Korea, the largest-ever investment, on Jan. 9.
The figure represents an increase of 3.9 trillion won over the 20.4 trillion won spent in 2024, the previous largest-ever investment.
The group’s largest-ever investment comes amid a consumer slump in EVs and a crisis in the United States, the group’s biggest market.
The inauguration of U.S. President Donald Trump’s second-term administration and Chinese EV maker BYD’s offensive have played a part. Hyundai Motor Group’s latest move may be construed as its determination to overcome a crisis and secure future growth engines.
Last year, Hyundai Motor Group reaped outstanding outcomes and growth in diverse sectors, on top of noticeable business performances. The group is now pondering diverse solutions to tide over more management uncertainties than ever.
Hyundai Motor Group’s investment for this year concentrates on future new areas, such as development of next-generation products, electrification and software-defined vehicle acceleration.
The group set aside 11.5 trillion won in R&D investments, 12 trillion won in ordinary investments and 800 billion won in strategic investments.
The R&D investments are to be used to develop EV, SDV and hydrogen technologies.
Hyundai Motor Group will come up with hybrid models with excellent performance and mileage and extended range electrified vehicle (EREV) to flexibly cope with EV demand changes.
Hyundai Motor Group plans to accelerate electrification by continuously developing new EV models.
Hyundai Motor plans to build a full EV line-up of 21 models, ranging from economical to luxury and high-performance, by 2030. Kia Motors will establish a full EV line-up of 15 models, including purpose built vehicles (PBVs) by 2027.
As for the SDV sector, the group aims to finish a project to develop SDV cars and apply their mass production by 2026.
Ordinary investments will go to expanding EV transition and new car production facilities, manufacturing technology innovation and supplementation of infrastructure, such as customer experience centers.
The group plans to pour money into EV plants this year.
Hyundai Motor Group Executive Chair Chung Eui-sun Outlines 2025 Vision
Hyundai Motor Group on Jan. 6 held its annual New Year’s event, with Executive Chair Chung Eui-sun outlining the Group’s focus for 2025: overcoming challenges through a commitment to innovation, embracing change, and further strengthening teamwork.
This year’s event, held at Hyundai Motorstudio Goyang, near Seoul, adopted a new format to drive in-depth dialogue among attendees, discussing the global business environment for the year ahead and the Group’s strategic direction.
Taking questions from the audience of more than 200 employees were Hyundai Motor Group Executive Chair Chung Eui-sun Chung, Group Vice Chair Chang Jae-hoon, Hyundai Motor President CEO José Muñoz, Presidents Sung Kim and Song Chang-hyeon, Kia President and CEO Song Ho-sung, Hyundai Glovis CEO Lee Kyoo-bok, Hyundai Capital CEO Jung Hyung-jin and Hyundai Engineering & Construction Vice President and CEO Lee Han-woo. Many more watching globally on the Group’s livestream.
Executive Chair Chung began by thanking Hyundai Motor Group employees around the world. “We achieved a lot last year,” he said.
“These achievements were the result of your tireless efforts to deliver the quality, trust and experience our customers expect. I extend my deepest gratitude to you all.”
He continued by emphasizing the importance of facing both internal and external challenges during the year ahead, as well as the potential for global growth across the Group’s operations by overcoming adversity through its commitment to innovation, further strengthening teamwork, and a proactive approach to creating future opportunities.
“Innovation is in Hyundai Motor Group’s DNA. If we continue to embrace change and pursue innovation, we can overcome any test or difficulty we may face,” said Executive Chair Chung.
With geopolitical uncertainties, shifts in the global economy, evolving consumer preferences, technological evolution in the mobility industry, emerging competitors, and the accelerating pace of innovation, 2025 will be a year of complex global dynamics.
Executive Chair Chung also reinforced Hyundai Motor Group’s resilience and its ability to further strengthen its position as a global mobility leader by looking for opportunities in every challenge.
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