Hyundai’s $50 billion bid: An ambitious bid for the No. 3 spot in the electric car market

Hyundai, the Korean automotive giant, has made a bold declaration of intent by announcing a monumental investment of $50 billion (68 trillion won) to solidify its standing in the rapidly evolving electric vehicle (EV) landscape. With plans to hire an additional 80,000 personnel in Korea, Hyundai aims to ascend among the top three EV manufacturers globally by the year 2030.

Hyundai’s Ambitious Investment in EV Transition

The colossal investment is earmarked for bolstering Hyundai’s foothold in pivotal areas such as EV technology and the development of software-defined vehicles (SDVs), positioning the company strategically for future growth. Notably, over half of the investment, approximately 35.5 trillion won ($26 billion), will be channeled into research and development (R&D) initiatives focusing on EV infrastructure and manufacturing, with an overarching goal of asserting dominance in core technologies. Additionally, a substantial sum of 31.1 trillion won is allocated for R&D endeavors in EV, SDV, and battery technologies.

Expansion Plans and Product Lineup

Hyundai’s investment blueprint encompasses an expansion of production facilities dedicated to EV manufacturing, bolstering IT capabilities, and fostering collaborative ventures with affiliates. The company’s immediate priorities include a significant investment in a new plant tailored for EV production, with Kia’s Gwangmyeong plant slated for completion in the second quarter of this year. This development will pave the way for the launch of Kia’s affordable EV3 in domestic and international markets.

In a bid to further augment its EV portfolio, Kia’s Hwaseong plant is scheduled to commence the production of PBV electric vehicles in the latter half of 2025. Meanwhile, Hyundai’s new Ulsan plant is set to commence operations in the first quarter of 2026, heralding the introduction of an “extra-large” Genesis electric SUV. This facility is poised to churn out 200,000 EVs annually post-launch, solidifying Hyundai’s production capabilities.

Visionary Products and Market Aspirations

Genesis, Hyundai’s luxury arm, unveiled its maiden foray into the realm of full-size luxury electric SUVs with the Neolun Concept. This sleek offering embodies Hyundai’s technological prowess and serves as a beacon for the company’s future endeavors in the EV space.

With an eye towards the future, Hyundai envisions producing 31 electric vehicle models by 2030, with an annual production target of 1.51 million units. Leveraging its dedicated EV platform (E-GMP), Hyundai has already witnessed success with models like the IONIQ 5, IONIQ 6, Kia EV6, and Genesis GV60. Anticipation mounts as Hyundai prepares to unveil its much-awaited three-row electric SUV, the IONIQ 9, later this year, signaling the company’s unwavering commitment to innovation and market leadership in the electrified automotive landscape.

Amidst Hyundai’s ambitious strides, industry observers note the contrast with competitors like GM and Ford, emphasizing the importance of visionary investments to navigate the electrified future and avoid relegation to the annals of history.

Source: Electrek