"Preparing for Uncertainty" Hyundai Motor Group's Record Domestic Investment of 24 Trillion Won This Year

Proactive Investment to Counter This Year's Global Business Variables
Investment Amount Increased by 19% to 24.3 Trillion KRW Compared to Last Year
Half of the Investment, 11.5 Trillion KRW, Dedicated to R&D

Hyundai Motor Group will invest a record-breaking 24.3 trillion KRW domestically this year. This decision is based on the judgment that proactive investment centered on the domestic market is necessary to respond to various management variables such as the strengthening of global protectionism, the demand for electric vehicles, and the slowdown in domestic consumption.

On the 9th, Hyundai Motor Group announced that it will invest 24.3 trillion KRW in domestic business this year, an increase of 3.9 trillion KRW compared to last year. This is the largest annual domestic investment in the history of Hyundai Motor Group.

Last year, Hyundai Motor Group recorded its best-ever performance and solidified its position as the third-largest global seller. However, this year’s management environment is more challenging than last year due to the strengthening of global protectionist policies, the prolonged electric vehicle chasm (temporary demand stagnation), and the slowdown in domestic market consumption. Additionally, with the inauguration of the Trump administration’s second term, the uncertainty in management is greater than ever, as unexpected policy-level variables could arise at any time.

To prepare for these uncertainties, Hyundai Motor Group views the development of next-generation products and securing core technologies as crucial, and has established a diversified and proactive investment strategy in future new business sectors. Of the 24.3 trillion KRW, about half, 11.5 trillion KRW, will be poured into research and development (R&D). Furthermore, 12 trillion KRW will be allocated to capital expenditures such as expanding production facilities, and 800 billion KRW will be spent on strategic investments.

Through R&D investment, Hyundai Motor Group plans to enhance product competitiveness with next-generation hybrids, extended-range electric vehicles (EREV), and steadily expand the development of new electric vehicle models. It also aims to develop a software-defined vehicle (SDV) face car equipped with high-performance electric and electronic architecture for vehicles by 2026 and apply it to mass-produced cars by strengthening software capabilities.

Capital expenditures will focus on manufacturing technology innovation and expanding customer experience bases, including expanding production facilities to respond to the transition to electric vehicles and new car models. Strategic investments will be used in future new business sectors for future mobility innovations such as autonomous driving, software, and artificial intelligence (AI).

By product, 16.3 trillion KRW, or 67% of the total investment amount, will be invested in the finished vehicle sector, which is the core business of the group companies. Additionally, 8 trillion KRW will be invested in upstream and downstream industries such as parts, steel, construction, and finance to enhance the competitiveness of core businesses.