Hyundai's Bold $16.65bn Investment Amidst Global Uncertainties

Hyundai Motor Group plans a record 24.3 trillion won investment to drive growth despite political and economic challenges. Focusing on technology and EV expansion, Hyundai aims to maintain stability. Consumer sentiment has taken a hit due to domestic political uncertainty and potential U.S. tariffs under the new administration.

In a strategic move to bolster growth amidst geopolitical and economic turbulence, Hyundai Motor Group announced its intention to increase domestic investment by 19% this year, reaching a historic 24.3 trillion won ($16.65 billion).

This massive investment is aimed at advancing next-generation products, expanding electric vehicle production, and pioneering new technologies such as software-defined vehicles and hydrogen fuel products. Some 11.5 trillion won is earmarked for research and development, while 12 trillion won will support production expansion.

Hyundai plans to establish a new facility at its Ulsan site for "hypercasting" manufacturing, a technique inspired by Tesla's "Gigacasting" approach. This move highlights Hyundai's commitment to cost-effective production and securing future growth amidst uncertainty posed by internal political instability and potential international trade challenges. The company's shares showed mixed reactions in the market following the investment announcement.

(With inputs from agencies.)