Hyundai commits a record +$16.6 billion in Korea to develop new tech and EVs

The world’s third-largest auto group is going all-in to lead the shift to electrification. With plans to pour a record over $16.6 billion into advancing new tech and EVs in South Korea, Hyundai is laying the groundwork for the future. Can the new investment help it surpass Volkswagen or Toyota in global sales?

Hyundai Motor Group, including Kia, announced on Thursday that it will “make the largest annual investment in its history in Korea this year.”

In 2025, Hyundai plans to invest KRW 24.3 trillion, or over $16.6 billion, in its home market. This is up 19% from the previous record of KRW 20.4 trillion (about $14 billion) set in 2024.

Hyundai said the reason behind the record investment “is because it believes that continuous and stable investment is essential to overcome the crisis and secure future growth engines.” A big part of the crisis Hyundai is referring to started last month.

After President Yoon Suk Yeol declared martial law and was later impeached on December 14, South Korea plunged into a political crisis. Korean buyers are hesitant to make big purchases, which has slowed demand.

Hyundai’s global sales slipped nearly 2% in 2024. Although sales outside of Korea were roughly flat, domestic sales were down 7.5%.

To boost growth in 2025, the auto giant is pouring resources to accelerate the development of new tech, EVs, and software.

Hyundai is doubling down on new EVs and tech

Hyundai said its focus this year is “on new business areas such as development of next-generation products, securing key new technologies, and accelerating electrification and SDV.”

The company will invest KRW 11.5 trillion ($7.9 billion) into R&D “to secure key future capabilities such as improving product competitiveness, electrification, SDV, hydrogen products, and development of original technologies.”

Another KRW 12 trillion ($8.2 billion) will be used to ramp up domestic EV production and improve manufacturing. Hyundai plans to continue making large-scale investments to build EV-only facilities in 2025.

Last year, Kia began production at its new Gwangmyeong EVO Plant, where it builds the new EV3. Later this year, Kia will start mass production of its PBV electric vans.

Hyundai will open its dedicated EV plant in Ulsan in the first half of 2026. The company plans to mass produce EVs, starting with an ultra-large electric SUV.

In the US, its most important market, Hyundai just opened its new $7.6 billion EV plant in Georgia. The first vehicle to roll off the assembly line was the upgraded 2025 Hyundai IONIQ 5, which now has more range, better style, and a NACS port for charging at Tesla Superchargers.

Hyundai will begin building its first three-row electric SUV, the IONIQ 9, in Georgia in Q1 2025. The larger electric SUV will be available in the US and Korea in the first half of 2025.

With several Hyundai Motor, including Kia and Genesis, EVs now eligible for the $7,500 federal tax credit, can Hyundai gain an advantage over the competition?

Hyundai is also the first company to sell its vehicles on Amazon in the US. The new 2025 IONIQ 5, IONIQ 6, and Kona Electric can now be purchased directly on Amazon’s website.