South Korean automaker Hyundai Motor HYMTF has reportedly announced a substantial investment of 68 trillion won, or about $50 billion, in South Korea over the next three years to bolster electric vehicle (EV) production.
What Happened: More than half of the investment will be channeled into research and development infrastructure and assembly lines for EVs, Reuters reported. The company will also hire 80,000 new employees, it added.
“We are doubling down on electrification,” stated Jose Munoz, Hyundai’s global Chief Operating Officer. “We’re very committed to the United States market.”
Hyundai Motor includes both Hyundai and its affiliate Kia.
Why It Matters: Hyundai’s decision to ramp up its EV production comes at a time when other automakers are slashing EV targets and goals.
In October, GM withdrew its EV production targets of making 400,000 EVs from 2022 to the first half of 2024 despite its vision to stop selling combustion-engine light-duty vehicles by 2035.
The company said in its fourth-quarter earnings call earlier this year that it intends to incorporate plug-in hybrid technology to select vehicles in North America.
Ford, likewise, said in February, that it intends to scale pure electric vehicles and hybrid electric vehicles simultaneously.
Earlier this month, Hyundai announced a refresh for its popular Ioniq 5 electric vehicle. The update includes over-the-air software updates, an expanded battery capacity, and the addition of a rear window wiper.
This move comes amidst a new EV policy introduced by the South Korean government that aims to support domestic automakers like Hyundai and Kia while also addressing competition from Tesla‘s Model Y and BYD Co.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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