Hyundai Motor to Invest $16.7 Billion in South Korea for 2025 Growth

Hyundai Motor Group has announced plans to invest a record 24.3 trillion won ($16.7 billion) in South Korea in 2025, marking a 19% increase from the previous year. This investment is aimed at fostering future growth amid economic and political uncertainties.

Focus on Future Technologies

The investment includes 11.5 trillion won allocated for research and development. Hyundai plans to focus on next-generation products such as electric vehicles (EVs), hydrogen-fueled vehicles, software-defined cars, and other advanced technologies.

Expanding Production for Electric Vehicles

Another 12 trillion won will go toward regular investments, including updates to production lines for EVs and new models. Additionally, about 800 billion won will be spent on strategic initiatives like autonomous driving technologies.

Overcoming Challenges with Strategic Investment

Hyundai Motor Group described the record-breaking investment as critical to navigating external challenges and ensuring long-term growth. Executive Chair Euisun Chung pointed to global conflicts and economic risks, including a potential recession, as key uncertainties.

Hyundai and Kia Stocks See a Boost

Following the announcement, Hyundai Motor share price and Kia Corp share price rose by 2.3% and 3.8%, respectively, outperforming the broader market’s 0.1% increase.

Global Sales Goals and Consumer Sentiment

Hyundai and Kia aim to increase their combined global sales by 2% to 7.39 million vehicles in 2025 despite missing their 2024 sales targets. Meanwhile, consumer sentiment in South Korea declined sharply in December due to political unrest, including President Yoon Suk Yeol’s declaration of martial law and impeachment.

U.S. Market Adjustments

Hyundai recently began production at a new factory in Georgia, USA, to make its vehicles eligible for federal tax credits under the Biden administration. This move comes as political uncertainty looms, with President-elect Donald Trump threatening to impose tariffs and scrap existing tax incentives.

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