South Korean auto manufacturer Hyundai Motor Co announced that it plans to invest about 109.4 trillion won ($85.41 billion) in the period through to 2032. Around 35.8 trillion won will be allocated for electric vehicles (EVs), it stated.
The automaker, in a statement, also said that it plans to spend about 109 trillion won ($85 billion) to boost production and make progress in areas such as hydrogen cars.
Hyundai is the world’s third-biggest carmaker. The latest announcement follows Toyota Motor Corp. which recently laid out an ambitious plan to sell 1.5 million battery EVs by 2026. Similarly, Ford Motor Co. is also pursuing a radical restructuring with ambitions to make 2 million EVs a year by 2026.
With its new goal, Hyundai seeks to achieve the target of 18% of its global sales in 2026 and 34% in 2030 accounted by EVs, including luxury brand Genesis. They will make up 53% of its sales in three key markets — Korea, the US and Europe – by the end of the decade. Volkswagen AG expects electric-battery vehicles to account for 20% of its global sales by 2025.
The carmaker is targetting the sale of 2 million EV units annually by 2030 and aims to achieve a more than 10% profitability rate for EVs in the same year.Hyundai and Kia have sold around 109,000 EVs this year, placing them fifth in the global industry, according to BloombergNEF.
Hyundai is facing pressure in the US and Europe to increase domestic production of clean cars and reduce reliance on battery minerals and components made in China. The company aims to start mass production at its EV plant being built in the state of Georgia in the second half of next year, Chief Executive Jay Chang said at an annual event for investors Tuesday.
