Seoul, Jan 09, 2025, IANS

Seoul, Jan 9 (IANS) Hyundai Motor Group on Thursday pledged to invest a record 24.3 trillion won ($16.6 billion) in South Korea this year to bolster future competitiveness amid uncertain global business environments. The annual investment plan represents a more than 19 percent increase from last year's domestic investment of 20.4 trillion won, according to the group. The decision was made under the belief that consistent and stable investment is critical to overcoming growing uncertainties and securing future growth drivers, the group said, reports Yonhap news agency. Of the planned spending, 11.5 trillion won will go to R&D activities to develop next-generation vehicles and core technologies, with 12 trillion won allocated for electric vehicle transition and production facility expansion, and 800 billion won budgeted for future businesses like artificial intelligence. On the R&D side, the group will focus on developing more competitive all-electric, software defined and hydrogen-powered vehicles to secure a future growth driver, the release said. To prepare for the upcoming era of EVs, Hyundai Motor aims to strengthen its EV lineup with 21 models by 2030 and its smaller affiliate Kia Corp. also plans to launch 15 EV models by 2027. As for facility expansion, the carmakers will continue to make investments in their local plants for EV production despite a temporary slowdown in EV sales, the group said. Kia plans to complete its Hwaseong EVO Plant, about 40 kms south of Seoul, in the second half to start production of electrified purpose-built vehicles (PBVs). PBVs allow passengers to enjoy tailored services while traveling to their destinations. Upon personalisation, PBVs can function as a restaurant, coffee shop and hotel, or even a clinic and pharmacy, in addition to an urban shuttle. Hyundai is building an EV-only plant in Ulsan, which is home to the carmaker's main plants located some 305 km southeast of Seoul, with an aim to begin production of various EV models early next year, starting with a large SUV. The 800 billion won will be spent on enhancing the competitiveness of the group's future businesses that include AI and autonomous driving, the release said. Last year, the group achieved notable performances across various sectors, supported by strong business results. However, with unexpected challenges in the business environment expected to intensify in 2025, the group said it is exploring a range of strategies to address uncertainties. Euisun Chung, executive chair of the group, earlier this week underscored the importance of resilience and transformation in his New Year's address to employees, emphasising Hyundai Motor Group's commitment to continuous improvements and innovation.