The automaker stated that over half of the investment, amounting to 35.5 trillion won will be dedicated to new R&D infrastructure and EV assembly lines.
Hyundai Motor Group announced on Wednesday that it plans to invest 68 trillion won (USD 51 billion) over the next three years in South Korea to boost electric vehicle (EV) production and develop new mobility businesses. The company also intends to hire 80,000 new employees, doubling its efforts at a time when other established automakers are scaling back.
Over half of the investment, amounting to 35.5 trillion won will be allocated to new research and development facilities and assembly lines for electric vehicles (EVs), as per the statement from the automaker. Hyundai’s global Chief Operating Officer, Jose Munoz, expressed a strong commitment to electrification and the United States market during an interview at the New York auto show.
In the U.S., Hyundai previously announced a USD 12.6 billion investment in new dedicated EV and battery manufacturing facilities in Georgia, marking the largest investment outside South Korea.
Hyundai Motor Group, which includes Hyundai Motor and its affiliate Kia, is the world’s third-largest automaker by sales. The conglomerate also encompasses auto parts maker Hyundai Mobis and Hyundai Engineering & Construction.
This new round of EV investment by Hyundai contrasts with other automakers that are slowing their EV production expansion plans and shifting resources to hybrid models or increasing share buybacks and dividends for investors.
In recent years, General Motors, Stellantis, and Ford have all adjusted their EV investment plans, with some delaying projects or shifting focus to other areas. Toyota, the world’s largest automaker by vehicle sales, has added more EVs to its lineup but continues to emphasize gas-electric hybrids, which has been well-received by investors.
Despite observing a slowdown in the pace of electrification, Munoz stated that Hyundai will maintain its plans but remain flexible, including the rollout of plug-in hybrid vehicles. Hyundai showcased its 2025 Tucson SUV and plans to launch both hybrid and plug-in hybrid versions this summer.
Hyundai expects to begin producing EVs in Georgia in October, ahead of schedule, to qualify for USD 7,500 tax credits under the Inflation Reduction Act. The company will soon announce which EVs will be built in Georgia.
The new investment plan also includes the overhaul of a Kia factory to produce a compact EV for domestic and international sales. In 2025, a second factory will start producing purpose-built EVs (PBVs), and Hyundai’s Ulsan factory will begin mass-producing ultra-large Genesis luxury EVs in the first quarter of 2026.
Additionally, Hyundai plans to invest another 31.1 trillion won in South Korea for research and development in electric vehicles, including software-defined vehicles (SDVs) and battery technology, with most of the new jobs created focusing on future business.
