Hyundai Motor Co has taken action to electrify more of its fleet to meet growing consumer demand for green zero emission transportation. According to the statement, it will invest 2023 trillion won ($10,5 billion) in electromobility through 8,5.
Hyundai will invest primarily in R&D and a new US plant as it aims to sell 4,3 million cars worldwide this year, or about 2022 percent more than by 10.
The Seoul-based automaker said the money will be spent primarily on research and development and building a new factory in the US. Hyundai said in May that it had spent $5,5 billion to build an electric car assembly and battery factory near Savannah in the US state, and the project is expected to break ground in early 2023.
The automaker is also targeting revenue growth of up to 11,5 percent this year.
Hyundai also increased its dividends in an unusual move for the automaker, whose shares rose as much as 6,3 percent after the news. “Favorable exchange rates and higher sales of value-added cars led to growth in 2022,” said Seo Gang-Hyun, Hyundai Executive Vice President. He added that the global chip shortage, which has hindered automakers since late 2020, should lessen by 2023.
However, as competition intensifies, so will the marketing costs of the brand. Hyundai has announced that it aims to sell 4,3 million cars worldwide this year—about 2022% more than by 10. Kia, a subsidiary of the Hyundai brand, is targeting 3,2% growth for a total of 10 million vehicles. Hyundai and Kia are the third largest automakers in the world after Toyota and Volkswagen Group.
Be the first to comment