South Korean Hyundai Motor plans to invest $ 16 billion in EV push

Seoul — South Korea’s Hyundai Motor plans to invest about 95.5 trillion won ($ 79.21 billion) by 2030, including about 19.4 trillion won ($ 161 billion) in its electric vehicle (EV) -related business on Wednesday. Stated.

Hyundai Motor, along with its affiliate Kia, is one of the top 10 automakers in the world in terms of sales, achieving a 7% market share in the global EV market by 2030 and aiming for annual sales of 1.87 million units. It is supposed to be. Virtual investor daytime.

A Seoul-based automaker said it aims to achieve an operating margin of 10% or more in its EV business by 2030.

“Hyundai is the world leader in EVs, accelerating the transition to electrification despite the harsh business environment due to the global chip shortage and continued pandemics,” said Jae Hung Chan, CEO of Hyundai Motor. I have succeeded in becoming. “

However, analysts said the $ 16 billion investment in Hyundai’s EV business is not considered a “aggressive” approach compared to its rivals, and the investment will invest ¥ 8 trillion. He added that it would be easily dwarfed by larger rivals, including Hyundai. $ 69.43 billion for electrification by 2030).

“Hyundai has allocated about 20% of its 95.5 trillion won investment to EV-related businesses, including the construction of new factories, EV charging stations and strategic alliances with battery makers. To EV The amount of investment in the company does not seem to be so surprising or aggressive. ” Lee Jail, an analyst at Eugene Investment and Securities.

Hyundai Motor said it is considering building a new dedicated EV production plant without proving details of the new plant, such as location and schedule.

Analysts said they are considering building a dedicated EV plant in the United States because Hyundai sees it as the main EV market.

Hyundai’s share price fell 2.6% compared to the benchmark KOSPI’s 0.2% rise.

($ 1 = 1,205.2600 won)

($ 1 = 115.2300 yen)

By Heekyong Yang and Joyce Lee