Hyundai Motor Group announced on the 9th that it will carry out the largest investment in domestic history this year. Amid an uncertain business environment, the group aims to secure future core technologies and expand infrastructure, including dedicated electric vehicle production bases in Ulsan and Hwaseong.

Hyundai Motor Group plans to invest 24.3 trillion won in the country this year. This amount is an increase of 3.9 trillion won (about 19%) compared to last year's record investment of 20.4 trillion won.

Chung Eui-sun, chairman of Hyundai Motor Group, gives a New Year’s address at the 2025 New Year’s meeting held at Hyundai Motorstudio Goyang in Goyang, Gyeonggi on Jan. 6. /Courtesy of News1
Chung Eui-sun, chairman of Hyundai Motor Group, gives a New Year’s address at the 2025 New Year’s meeting held at Hyundai Motorstudio Goyang in Goyang, Gyeonggi on Jan. 6. /Courtesy of News1

This investment will focus on developing next-generation products, securing key new technologies, and accelerating electrification and software-defined vehicles (SDV) in future new business sectors. By sector, research and development (R&D) investment will be 11.5 trillion won, ongoing investments will amount to 12 trillion won, and strategic investments will total 800 billion won.

R&D investment will be used to enhance product competitiveness and secure core future capabilities such as electrification, SDV, hydrogen products, and source technology development. Plans are being made to respond to changes in electric vehicle demand by advancing next-generation hybrid systems and steadily expanding the development of new electric vehicle models.

In the SDV field, it has been proposed to finalize the SDV pace car development project, which applies high-performance electric and electronic architecture to vehicles, by 2026 through software internalization and to expand its application to mass-produced vehicles.

Ongoing investments will be allocated for expanding electric vehicle (EV) conversion and production facilities responding to new vehicles, innovating manufacturing technology, and complementing customer experience infrastructure. Strategic investments will be made to enhance the competitiveness of key future businesses such as autonomous driving, software, and artificial intelligence (AI).

This year, large-scale investments will also be made in building EV-specific processes. Following the operation of the Kia Gwangmyeong EVO plant last year and the start of small electric vehicle EV3 production, the Kia Hwaseong EVO plant is expected to be completed in the second half of this year, marking the full-scale production of customer-tailored electric purpose-built vehicles (PBV). The Ulsan EV-specific plant is under construction with a target operation date in the first half of 2026.

When classifying this investment by business sector, 16.3 trillion won, or about 67%, will be allocated to the finished vehicle sector. The remaining investment of 800 billion won will be made in the parts, steel, construction, finance, and other business sectors to explore new businesses and enhance the competitiveness of core businesses.

A representative from Hyundai Motor Group noted, "In a situation where uncertainty is increasing, continuous and stable investment is essential to overcome crises and secure future growth engines," and added, "This also reflects efforts to actively communicate with and build trust among various stakeholders including customers, shareholders, and the market."