Hyundai Motor Group will invest $51 billion to increase the scale of its electric vehicle operations, “doubling down” on the battery-powered car segment even as other manufacturers postpone similar investments due to slower-than-expected sales.
The South Korean automaker conglomerate said its new investments would be distributed over the course of three years. Roughly $26 billion will be used to expand infrastructure and manufacturing, while the remainder will fund research and development for new electric vehicles. Hyundai expects to hire an additional 80,000 workers to help it achieve its goals of expanding its new mobility businesses.
Company Chief Operating Officer José Muñoz addressed the new investments during this week’s New York International Auto Show, where he noted the funds would help bring more electric vehicles to the U.S. “We are doubling down on electrification,” he commented. “We’re very committed to the United States market.” In an interview with CNBC, Muñoz also suggested Hyundai may build hybrids at its $12.6 billion plant in Georgia, initially intended for electric vehicles only. “Everything is on the table,” he stated.
Muñoz’s comments and the announcement of Hyundai’s massive investment comes during a global cooling of the electric vehicle market. While the segment’s market share rose to 6.9% from 5.2% between 2022 and 2023, Edmunds expects growth to slow this year, hitting only 8% by 2025. Automakers such as General Motors and Ford have delayed investments that would have rapidly expanded battery production and electric vehicle development.
However, Hyundai is not the only company to go against the grain when it comes to electrification. China’s BYD has proven to be an aggressive competitor in the segment, recently launching a fully electric model for less than $10,000. The move, along with the brand’s steadily tightening grip on both its domestic and European markets, has jumpstarted fears of entering a price war with Chinese automakers, influencing some manufacturers, possibly including Hyundai, to re-examine their electrification strategies.
