Hyundai Motor To Invest $28billion in Electric Vehicles

Hyundai Motor will raise average annual investment in electrification by nearly two thirds to $28 billion in the next decade and further restructure its struggling China business as part of a broader strategy to boost electric vehicle (EV) sales.

Hyundai Motor will raise average annual investment in electrification by nearly two thirds to $28 billion in the next decade and further restructure its struggling China business as part of a broader strategy to boost electric vehicle (EV) sales.

In its annual investor day on Tuesday, the South Korean automaker, the world’s No. 3 auto group by sales together with its affiliate Kia, said it also raised its EV sales target to 2 million units by 2030 from 1.87 million.

It would represent around one third of its total vehicle sales, up from 8% expected this year. “With global EV demand growing faster than market forecasts, Hyundai Motor is raising its 2030 sales target,” it said in a statement.

To meet the target, Hyundai plans to boost local production of EVs in its three key markets of the United States, Europe and South Korea, as more countries roll out tax benefits and incentives for locally manufactured vehicles.

In the United States, its biggest market, EV production will account for three quarters of its total vehicle production there by 2030 from just 0.7% now.

While it raised EV sales targets in its major markets, Hyundai said it would further restructure its struggling China business to focus on profitability.

Hyundai CEO Jaehoon Chang told investors that China, the world’s largest vehicle market, had been very profitable up until 2016 but it was now the biggest risk as the automaker had lost market share to nimble domestic rivals.

Hyundai sold one China plant in 2021 and plans to sell two more, including one that it shut down last year and another that it plans to close this year.