Hyundai commits to $18bn spend in shift to electric cars

Hyundai Motor Group has committed to a spend of around KRW24tn ($18.2bn) by 2030 as it seeks to increase production of electric vehicles.

The group, which also set itself a goal of becoming one of the world’s top three EV makers, plans to boost its annual output of electric cars in Korea to 1.51 million units by end of this decade, or about 40 per cent of estimated global EV production of 3.64 million, according to an e-mailed statement Tuesday.

The group includes Hyundai Motor, Kia Corporation, the luxury Genesis brand and parts and service arm Hyundai Mobis.

Hyundai said that by 2030, it expects to have 31 EV models across its suite of brands. It added that Kia will build a new plant to manufacture electric purpose-built vehicles in Hwaseong city south of Seoul.

Kia is preparing to release a three-row seat electric SUV, the EV9, in Korea later this year while Hyundai plans to introduce the Ioniq 7 in 2024.

Hyundai and Genesis plans

Hyundai and Genesis have detailed plans previously to introduce at least 17 battery-powered EVs by 2030, alongside 14 from Kia, which should be a “huge enabler” to reach the company’s goal of 3.5 million annual EV sales in 2030.

Automakers and battery producers in Korea are also still trying to figure out how to navigate US President Joe Biden’s Inflation Reduction Act, which requires carmakers to build EVs in the US in order to be eligible for subsidies.

The automaker has been lobbying US officials for tweaks to the bill considering it doesn’t have any operational plant dedicated to EVs in the US yet.

The latest IRA guidance earlier this month showed little change on that front.

Hyundai on Tuesday held a groundbreaking ceremony, which South Korean President Yoon Suk Yeol attended, for the Hwaseong plant.

In the first half, Yeol’s administration will announce a package of support for Korea’s EV industry, including financial help and investment into auto parts R&D, the government said in a separate statement.

South Korea wants to become an “Asia hub” for global EV production, the presidential office said.

Read: Hyundai unveils Ioniq 6 in push to challenge Tesla