Hyundai Motor Group Allocates Big Fund For Investment In Electric Car Factory And Production Expansion

Hyundai Motor Group has announced the allocation of reservation funds worth 7.8 trillion won (around Rp90.9 trillion) to encourage group investment plans in domestic electric car (EV) factories.

In an effort to strengthen financial status and support aggressive investment in EV production, Hyundai Motor Co., Kia Corp., and the Hyundai Mobis Co spare parts division will each receive dividends of US$2.1 billion (around Rp31 trillion), US$3.3 billion (around Rp49 trillion), and US$200 million (around Rp2.9 trillion) from their operations in the US and Europe.

According to South Korean media reports, Yonhap, Monday, June 12, the dividends obtained from the overseas operation will help reduce bank loan burdens and strengthen the financial condition of the three companies. This will allow them to carry out aggressive investments in the construction of electric car factories.

Foreign operations included in the allocation of these funds include Hyundai Motor America, Hyundai Motor India, Hyundai Motor Manufacturing Czech, Kia America, Inc., Kia Europe, and Kia Slovakia SRO. During the 2021-2022 period, the operation has recorded good revenue.

The plan is that Hyundai will complete an electric car factory with a production capacity of 150,000 units per year at its main factory in Ulsan by 2025. Meanwhile, Kia is also building a factory in Hwangseong that will be able to produce 150,000 units of electric cars per year. The factory is scheduled to operate by the end of 2025.

In April, Hyundai Motor Group also announced an investment plan of 24 trillion won (approximately IDR 279.8 trillion) for local electric car manufacturers and other EV projects by 2030. With this investment, Hyundai Motor Group aims to become one of the world's leading electric car manufacturers by 2030.

In addition to production expansion, Hyundai Motor and Kia have plans to release a total of 31 battery-powered electric car models by 2030, including Kia EV9 which is scheduled to launch this month, as well as Hyundai IONIQ 7 which will be coming next year.

Hyundai Motor and Kia have set a combined sales target of 7.52 million units of vehicles for this year, up 9.8 percent from the previous year's sales total of 6.85 million units.

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