Hyundai Motor Group Announces 125 Trillion Won Investment in South Korea Through 2030

Hyundai Motor Group has announced plans to invest 125.2 trillion won (86.47 billion dollars) in South Korea over a five-year period from 2026 to 2030. The investment marks the largest commitment in the group's history and represents a 40 per cent increase from the previous five-year period. 

The South Korean automaker revealed the investment plan on Sunday, following the conclusion of tariff negotiations between South Korea and the United States. The announcement comes as Hyundai positions South Korea as a hub for production and export operations whilst expanding its presence in markets including North America, India, and emerging regions. 

The 125.2 trillion won investment will be distributed across three sectors. Future business initiatives will receive 50.5 trillion won, focused on artificial intelligence, robotics, software-defined vehicles, and hydrogen energy technologies. Research and development activities will account for 38.5 trillion won, targeting mobility products and core technologies. Capital investments totalling 36.2 trillion won will support production optimisation, manufacturing technology innovation, and customer service facilities. 

The group plans to construct a high-power AI data centre for training and operating models used in physical AI robots and autonomous vehicles. Hyundai will also build a 1-gigawatt electrolyser plant in South Korea's southwestern region to produce green hydrogen, leveraging renewable energy sources. 

Hyundai Motor Group aims to export 2.47 million units by 2030, up from 2.18 million units in 2024. The company plans to expand electrified vehicle exports, including electric vehicles, plug-in hybrids, hybrids, and fuel cell vehicles, from 690,000 units to 1.76 million units over the same period. 

The group operates vehicle and parts manufacturing facilities across key regions in South Korea and will continue investing in production line optimisation for new vehicle launches. Hyundai Steel Company is constructing an LNG power plant at its Dangjin steelworks, whilst Hyundai Engineering is expanding infrastructure such as EV charging stations nationwide. 

Hyundai Motor India announced plans to invest 45,000 crore rupees (5 billion dollars) in India by 2030 during its first investor day in October. The investment represents the company's most substantial growth roadmap for the Indian market since entering in 1996. 

Sixty per cent of the proposed investment will support product development and research activities, with the remaining 40 per cent allocated for capacity expansion and facility upgrades. The company plans to launch 26 models by fiscal year 2030, including seven new nameplates and entries into the multi-purpose vehicle and off-road SUV segments. 

Hyundai Motor India will introduce its luxury brand Genesis and establish Hyundai Capital, its finance arm, in India by 2027. The company aims to produce India's first locally manufactured electric SUV by 2027. 

The automaker has set targets to achieve over 15 per cent domestic market share by 2030, with SUVs contributing more than 80 per cent to its portfolio. Hyundai expects eco-friendly powertrains, including CNG, hybrid, and electric vehicles, to account for over 50 per cent of its product range. 

India will serve as an export hub, with Hyundai targeting up to 30 per cent export contribution by 2030. The company plans to direct approximately 50 per cent of exports to West Asia and Africa, 40 per cent to Central and South America, and 10 per cent to the Asia Pacific region. 

Hyundai Motor Group is targeting North America as a priority market, with plans to invest 21 billion dollars in the United States from 2025 to 2028. The company aims to produce over 80 per cent of vehicles sold in the United States domestically by 2030, increasing supply chain content from 60 per cent to 80 per cent. 

The group will expand production capacity at Hyundai Motor Group Metaplant America by 200,000 units to reach 500,000 units annually. North America achieved 314,964 retail units in the third quarter of 2025, up 13.2 per cent, with electrified vehicles accounting for 30.1 per cent of regional sales. 

India represents a strategic growth market, with Hyundai positioning the country as its second-largest global region by 2030. The company will add 250,000 units of production capacity at its Pune facility. India serves as a production hub for emerging markets, exporting cost-optimised vehicles to Africa, the Middle East, Latin America, and neighbouring countries. 

Hyundai is expanding in emerging markets across Central and South America, where hybrid sales surged 293 per cent in the third quarter. The company reported growth in regions including Mexico, Peru, Chile, Saudi Arabia, and South Africa. Hyundai Motor India's export markets in 2024 included Saudi Arabia, South Africa, Mexico, Chile, and Peru. 

The automaker has established strategic partnerships to enhance regional presence. A collaboration with General Motors will produce five co-developed vehicles for North America, Central America, and South America, with expected annual sales exceeding 800,000 units. Hyundai Capital has expanded operations to 14 countries, including the United States, Canada, United Kingdom, Germany, Brazil, Australia, and Indonesia. 

Hyundai Motor Group targets 5.55 million global vehicle sales by 2030, with electrified vehicles reaching 3.3 million units, representing 60 per cent of total sales. The company plans to offer over 18 hybrid models by 2030, more than doubling the current seven models. 

Global production capacity will increase by 1.2 million units by 2030, including 500,000 additional units from the United States facility, 250,000 units from India, and 200,000 units from the Ulsan electric vehicle plant in South Korea. Hyundai plans to expand annual electric vehicle production in South Korea to 1.51 million units and global volume to 3.64 million units by 2030. 

The company will launch region-specific electric vehicles, including the IONIQ 3 for Europe, India's first locally designed electric vehicle, and China-produced models. Extended range electric vehicles with over 600-mile driving range will debut from 2027.