Hyundai Unveils $52 Billion Spending Plan
Hyundai Motor Co. says it will spend 61.1 trillion won ($52 billion) between 2020 and 2025 on research and advanced technologies.
The six-year plan, called Strategy 2025, aims to transform the carmaker into a “smart mobility solution provider” focused on delivering smart mobility devices and services that include personal airborne vehicles, robotics and last-mile mobility options.
The r&d spending will average roughly 10 trillion won ($8.5 billion) per year compared with last year’s 6.1 trillion-won investment.
Hyundai also strives to become one of the world’s three largest makers of battery and fuel cell vehicles by 2025. The company targets annual sales of 670,000 EVs (84% of them battery powered) over the period.
Another corporate goal by 2025 is to reach an operating margin of 8% for its automotive operations and capture 5% of the global car market, up from 4% last year. Separately, Hyundai intends to buy back 300 billion won ($8.5 billion) worth of its stock by February to help boost shareholder value.
The carmaker says it will implement its electrification strategy by targeting businesses and young consumers with inexpensive EVs to help it build economies of scale.
Hyundai says it expects to develop a fully autonomous driving platform by 2022 under the Strategy 2025 plan. The company also intends to install Levels 2-3 autonomous driving technology, including automatic parking assist, in all models by 2025.