Hyundai To Invest KRW 24 Trillion To Enhance Domestic EV Industry

Mobility Outlook Bureau
12 Apr 2023
12:30 PM
2 Min Read

Under the plan, Hyundai Motor Group aims to expand the annual EV production in Korea to 1.51 million units and global volume to 3.64 million units by 2030.

Hyundai Motor Group

In a bid to become one of the world’s top three EV manufacturers by 2030 through combined sales, Hyundai Motor Group has announced its plans to invest KRW 24 trillion (approximately $18.11 billion) in the domestic EV industry through Hyundai Motor, Kia and Hyundai MOBIS by 2030.

A press release from Hyundai Group noted that under the plan, it aims to expand the annual EV production in Korea to 1.51 million units and global volume to 3.64 million units by 2030. To enhance the domestic EV production capacity, Kia is building a new plant dedicated to producing electric PBVs, while also expanding the existing EV lines at plants to expand the production capacity of EVs.

In addition, the Group will invest heavily in R&D, such as developing a platform for next-generation EVs, expanding the product lineup, developing core parts and advanced technologies, and establishing research facilities. It will also promote technology development with its partners.

The group said that this would enhance integrated marketability across hardware and software, including diversification of dedicated platform product lineup, advancement of power electric (PE) systems that are key to EV performance, such as batteries and motors, and development of technologies to increase all-electric range (AER) on a single charge.

The Group plans to sequentially develop dedicated platforms for each vehicle class under the Integrated Modular Architecture (IMA) system, including the ‘eM’ platform designed exclusively for passenger EVs, which will be introduced in 2025. Platforms using IMA can standardise batteries and motors to increase product development speed and efficiency.

By 2030, Hyundai Motor Group will have a total lineup of 31 EV models, including models from Hyundai Motor, Kia, and Genesis. Kia will launch EV9, its first three-row seat electric flagship SUV, this year, and Hyundai Motor plans to launch the IONIQ 7 in 2024.

Moreover, the companies will build a high-speed charging infrastructure to maximise charging convenience for EV customers and continuously expand Korea’s charging network. In April 2021, the Group launched E-pit, a high-speed EV-charging brand, and the E-pit Charging Service Platform (E-CSP) the following year.

Preparing The Ground

Last year, Hyundai Motor Group announced a new sustainable partnership programme to strengthen the competitiveness of the Korean automotive industry and the future automotive era. It has also operated a programme of KRW 5.2 trillion (approximately $3.9 billion) to better support suppliers on their profit and loss, liquidity and competitiveness improvement measures.

In particular, the Group plans to significantly expand support for suppliers to play a leading role in accelerating the electrification transition of the auto parts industry and contribute to the qualitative growth of the Korean auto industry.

The Group will share cost burdens with its suppliers on the fluctuation of raw materials and reflect those changes in the prices of goods provided. It paid around KRW 3.4 trillion (approximately $2.6 billion) for the increase in raw material delivery to more than 300 primary suppliers last year.

To help enhance suppliers’ liquidity, the Group is establishing a fund to enable suppliers of internal combustion engine parts who wish to diversify their businesses, including developing eco-friendly vehicle parts so that they can borrow business funds at low-interest rates compared to the market.

Notably, the Group provides external management consulting to suppliers seeking to develop new future business strategies and discover new business growth engines while helping executives and employees of partner companies to develop future mobility capabilities through special training.

Through these strategic investments, the Group plans to hone the Korean EV industry’s competitive edge to deliver unparalleled products and services that will drive the paradigm shift in the global mobility industry.

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