Hyundai Motor Group's Bold 24 Trillion Won Investment... "3.64 Million Electric Vehicles Production by 2030, Aiming for Top 3"

Hyundai Motor Group has unveiled its mid- to long-term strategy to rank among the top three in the electric vehicle market by 2030.

On the 11th, Hyundai Motor Group held a groundbreaking ceremony for an electric vehicle-only factory at Autoland Hwaseong in Hwaseong, Gyeonggi Province, attended by about 200 people including President Yoon Suk-yeol, Hyundai Motor Group Chairman Chung Eui-sun, and Kia President Song Ho-sung. Along with the groundbreaking ceremony, Hyundai Motor, Kia, and Hyundai Mobis announced that the three companies will invest 24 trillion KRW domestically by 2030 to expand domestic production and exports in the electric vehicle sector and strengthen related industries.

[Image source=Yonhap News]

원본보기 아이콘

Specifically, they plan to increase domestic annual electric vehicle production to 1.51 million units (920,000 units for export) by 2030. Including Hyundai Motor Group factories worldwide, total production is projected at 3.64 million units.

To achieve this, they will establish new electric vehicle-only factories and convert existing factory lines to electric vehicle-only lines. Industrial robots and other equipment within the electric vehicle production plants will be equipped with domestically produced intelligent robots. Hyundai Motor Group explained that since these robots have a localization rate of 99%, most of the factory facility investment costs will return to domestic companies.

They will also focus on intensive investment in research and development, including the development of next-generation electric vehicle-exclusive platforms, expansion of product lineups, development of core components and advanced technologies, and establishment of research facilities. This includes the advancement of PE (Power Electric) systems such as batteries and motors, which are key to electric vehicle performance, as well as technologies to increase driving range per charge.

They will also build ultra-fast charging infrastructure to enhance the convenience of electric vehicle charging and continuously expand the charging network.

The company has been operating a new win-win cooperation program worth 5.2 trillion KRW since last year to strengthen the competitiveness of parts suppliers. Support will be significantly expanded not only to first-tier partners but also to more than 5,000 second- and third-tier partners with no direct transactions. Specifically, this includes expanding the raw material linkage system, supporting 3.4 trillion KRW in increased payment for supplies, and establishing a supply chain stabilization fund.

Hyundai Motor Group plans to have a total of 31 electric vehicle models in its lineup by 2030. Kia plans to launch the EV9 this year, and Hyundai Motor plans to release the Ioniq 7 in 2024.

Kia President Song Ho-sung said, “We plan to invest a total of 24 trillion KRW in the domestic electric vehicle sector by 2030, contributing to South Korea’s rise as one of the top three global electric vehicle powers,” adding, “We will strengthen the competitiveness of the entire domestic electric vehicle ecosystem, including research and development, production, and infrastructure, and lead the changes and innovations in the future automotive industry.”

[Image source=Yonhap News]

원본보기 아이콘

The factory being built this time is the first complete vehicle manufacturing plant Hyundai Motor Group has constructed domestically in 29 years since the groundbreaking of Hyundai Motor’s Asan Plant in 1994. It is also the first newly established electric vehicle-only factory in South Korea. Approximately 30,000 pyeong of land will be used with an investment of about 1 trillion KRW, and mass production is scheduled to begin in the second half of 2025. The plant will secure an annual production capacity of up to 150,000 units.

Kia plans to exclusively produce customer-tailored electric vehicles at this new factory. The first model of the purpose-built vehicle (PBV) lineup to be introduced in 2025, project-named SW, will be developed as a mid-sized vehicle. Subsequently, large and small PBVs, as well as robo-taxis incorporating autonomous driving technology, will be produced.

A Hyundai Motor Group official said, “Through concentrated domestic investment, we plan to strengthen global competitiveness in the electric vehicle sector centered on Korea,” adding, “We will enhance the competitiveness of the entire domestic electric vehicle ecosystem and lead the changes and innovations in the global future automotive industry.”

© The Asia Business Daily(www.asiae.co.kr). All rights reserved.