South Korean auto giant Hyundai commits to unprecedented $85.8 billion domestic investment over five years, focusing on AI, robotics and electric vehicles.
SEOUL: Hyundai Motor Group has pledged an unprecedented $85.8 billion investment in South Korea over the next five years.
The auto giant described it as “the company’s largest-ever domestic investment commitment”.
A significant portion will focus on new businesses based on advanced AI technologies including robotics and software-defined vehicles.
Around 40% of the total spending will target AI, software-defined vehicles, electrification, robotics and hydrogen development.
The investment aims to boost exports of South Korea-made vehicles by 13% to 2.47 million units by 2030.
Company officials said the roadmap “highlights the Group’s agility in actively responding to the rapidly changing global business environment”.
This announcement follows Samsung Group’s recent pledge to invest $310 billion over the same period, largely in artificial intelligence technologies.
The investment commitments come after Seoul concluded a new trade deal with Washington.
Under the agreement, South Korean exports including Hyundai vehicles will face reduced tariffs of 15%, down from 25%.
Hyundai Motor Group, which includes Kia, sold more than 7.2 million vehicles globally last year.
