Posted on 14 Apr 2023
Hyundai Motor Group this week announced its goal to become one of the top three electric vehicle (EV) manufacturers worldwide by 2030 through the combined sales of Hyundai Motor, Kia and Genesis electric models.
The group expects to boost its annual EV production to 1.51 million units domestically, and 3.64m units globally by 2030, Kallanish notes. In order to achieve these objectives, Hyundai Motor, Kia and Hyundai MOBIS plan to invest KRW 24 trillion ($18.33 billion) in the sector domestically.
“The Group’s large-scale investment aims to upgrade Korea’s EV ecosystem and strengthen its role as a hub for driving innovation in the global automotive industry. It is also expected to promote a virtuous cycle of domestic EV production, R&D, infrastructure and related industries,” said Hyundai.
The goal was announced at the ground-breaking ceremony of Kia’s new plant dedicated to produce electric purpose-built vehicles (PBVs) in Korea, which is one of the many to expand EV capacity.
The new plant is estimated to cost KRW 1 trillion, with the ambition to start mass-production in the second half of 2025. The firm wants to produce 150,000 units in the first full year, and expects to expand in line with future market conditions.
The South Korean government is also preparing to revise its subsidy policy for EVs sold in the country this year to favour domestic car producers. Local analysts suggested that Hyundai and Kia would gain the most from the changes as they have the largest EV charging networks in the country.
According to the Ministry of Trade, Industry and Energy, the combined EV production of Hyundai Motor and Kia reached 333,000 units in 2022, surging 44.8% over 2021. However, domestic sales of EVs produced by domestic automakers did not exceed 100,000 units until end October.
Source:Kallanish
