Hyundai Motor Group is making a bold move to lead the charge towards electrification by investing a record amount of over $16.6 billion in advancing new technologies and electric vehicles (EVs) in South Korea. This strategic investment aims to propel Hyundai ahead of competitors like Volkswagen and Toyota in global sales.
The decision to invest such a substantial amount of money comes at a crucial time for Hyundai as the company faces challenges due to a recent political crisis in South Korea. Following the impeachment of President Yoon Suk Yeol and the declaration of martial law in December 2024, consumer confidence in the country has waned, leading to a slowdown in demand for vehicles.
In response to these challenges, Hyundai has outlined a comprehensive plan to boost growth and innovation in 2025. The company will focus on developing next-generation products, securing key technologies, and accelerating electrification and software-defined vehicles (SDV). A significant portion of the investment, totaling KRW 11.5 trillion ($7.9 billion), will be allocated to research and development to enhance product competitiveness, electrification, SDV, hydrogen products, and the development of original technologies.
Hyundai also plans to invest KRW 12 trillion ($8.2 billion) in ramping up domestic EV production and improving manufacturing processes. The company will continue to invest in building EV-specific facilities in 2025, with Kia already beginning production at its new Gwangmyeong EVO Plant and preparing to mass-produce PBV electric vans.
Furthermore, Hyundai is set to open a dedicated EV plant in Ulsan in the first half of 2026, focusing on mass-producing EVs, starting with an ultra-large electric SUV. In the US, Hyundai recently inaugurated a new $7.6 billion EV plant in Georgia, where the upgraded 2025 Hyundai IONIQ 5 is now being manufactured. The company’s first three-row electric SUV, the IONIQ 9, is also scheduled to begin production in Georgia in Q1 2025.
With Hyundai’s lineup of EVs now eligible for the $7,500 federal tax credit and the company becoming the first to sell vehicles on Amazon in the US, Hyundai is strategically positioning itself to gain a competitive edge in the EV market. By focusing on innovation, electrification, and customer accessibility, Hyundai is paving the way for a sustainable and successful future in the automotive industry.
