Hyundai Motor Group announced plans to invest a record-breaking 24.3 trillion won ($16.65 billion) in South Korea this year, marking a 19% increase from 2024. The investment aims to secure future growth amidst ongoing global economic and political uncertainties.
The group, which includes Hyundai Motor and Kia Corp—ranked third globally in vehicle sales after Toyota and Volkswagen—will allocate 11.5 trillion won for research and development. This will focus on next-generation technologies, including electrification, software-defined vehicles, hydrogen-powered products, and other innovations.
An additional 12 trillion won is set aside for production upgrades, including electric vehicle manufacturing and new model launches, while 800 billion won will go towards strategic investments in areas like autonomous driving.
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“Continuous and stable investments are essential to overcome crises and secure future growth engines amid rising uncertainties,” Hyundai Motor Group stated. Executive Chair Euisun Chung highlighted recession risks and global conflicts as major challenges for the company.
Following the announcement, Hyundai and Kia shares rose by 2.3% and 3.8%, respectively, outperforming the broader market’s 0.1% increase.
Hyundai and Kia plan to increase global sales by 2% to 7.39 million vehicles in 2025, despite missing targets in 2024.
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