Hyundai Motor Group said Thursday it will make its largest annual investment this year, after earmarking KRW 24.3 trillion ($16.7 billion) in South Korea, Kallanish reports.

The planned investment is 19% higher than the previous domestic record of KRW 20.4 trillion in 2024. The aim is to strengthen its future competitiveness centred on Korea, amid the uncertain business environment both at home and abroad, the firm says.

Of that, KRW 11.5 trillion will be used for research and development for next-generation mobility technologies such as electrification, software-defined vehicles (SDVs) and hydrogen. Hyundai will also spend KRW 12 trillion in expansions of current projects and KRW 800 billion in “strategic investment.”

The carmaker estimates that the investment in the finished vehicle sector will amount to KRW 16.3 trillion. The goal is to ramp up annual domestic EV production from 2024’s 330,000 units to 1.51 million units by 2030, of which 920,000 units will be exported.

Its target corresponds to about 41% of the global EV production target for all carmakers by 2030. Hyundai and Kia aim to have a combined 31 EV models by 2030. The automakers also plan to deploy 3,000 ultra-fast EV chargers by 2025.  

Besides the domestic boost to its all-electric production capacity, the group is also introducing innovative production methods to improve manufacturing competitiveness. This includes a hypercasting plant at Hyundai Motor Company’s Ulsan plant.

“Hypercasting is an advanced method for manufacturing entire car bodies and is expected to contribute significantly to improving the performance of next-generation products such as electric vehicles,” the group explains in a statement.

Company’s chairman Chung Eui-sun has previously promised a domestic investment plan of KRW 68 trillion between 2024 and 2026.

Earlier this week, he told employees and shareholders that the focus for 2025 is to overcome challenges through a commitment to innovation, embracing change, and further strengthening teamwork.

“There is no need to be intimidated by uncertainties ahead. Without challenges, we risk becoming complacent, which presents a bigger danger,” Chung said. “We cannot assume success in 2025 simply because of our strong performance last year. But we should also not be pessimistic as a defensive mindset can stifle innovation.”

“Challenges can sharpen awareness and drive action – Hyundai Motor Group has successfully navigated challenges in the past and emerged stronger. We will do the same again,” he concluded.