Hyundai Motor Group has announced a record-breaking domestic investment of 24.3 trillion won ($16.7 billion) for 2025, marking its largest-ever annual commitment in South Korea. This 19% increase from the previous year comes as the automaker navigates global economic uncertainties, geopolitical challenges, and local political tensions, as reported by KED Global. The investment reflects Hyundai's determination to strengthen its position in future mobility technologies despite the current "perfect storm" of economic crises, as noted by Executive Chairman Chung Euisun.

Advancing Future Mobility

Out of the total investment, 11.5 trillion won will fund research and development in next-generation technologies such as electrification, software-defined vehicles (SDVs), and hydrogen solutions. An additional 12 trillion won is allocated for expanding electric vehicle (EV) production lines and building associated infrastructure, while 800 billion won will go toward strategic investments in autonomous driving and artificial intelligence.

Hyundai Motor Group aims to bridge the current EV adoption gap by offering a diverse lineup of hybrid models with enhanced performance and fuel efficiency. Simultaneously, the company is advancing its electrification goals by developing a comprehensive portfolio of EVs. By 2030, Hyundai plans to launch 21 EV models, spanning economy to luxury and high-performance vehicles. Kia, its sibling brand, targets a full EV lineup of 15 models by 2027, including purpose-built vehicles (PBVs).

The company is also focusing on its SDV initiative, which allows vehicles to receive continuous upgrades via over-the-air systems throughout their lifespan. Hyundai aims to integrate SDV technology across its mass-produced models by 2026, transitioning all vehicles into "smartphones on wheels."

Expanding EV Production in South Korea

To meet growing EV demand, Kia will inaugurate a new EV-dedicated manufacturing facility in Hwaseong later this year. The plant will specialize in PBV EV production, complementing Kia’s existing EV facility in Gwangmyeong, which began operations in 2024 with an annual capacity of 150,000 units. Meanwhile, Hyundai Motor is constructing an EV manufacturing plant in Ulsan, set to begin production in early 2026, focusing on large-size electrified SUVs.

Commitment to Innovation

Hyundai’s investment also underscores its ambition to diversify its business by developing new mobility devices and enhancing its robotics division. This announcement follows the group’s earlier three-year investment plan of 68 trillion won (2024–2026) to lead in electrification, SDVs, and future mobility.

Hyundai Motor shares closed slightly lower at 213,000 won on Thursday, while Kia shares rose by 2.3% to 103,300 won, reflecting market confidence in the group’s forward-looking strategies.