Hyundai Motor Group Metaplant America (HMGMA), an electric vehicle factory (Image courtesy of Hyundai Motor Group )
SEOUL, Jan. 9 (Korea Bizwire) — Hyundai Motor Group has unveiled plans for its largest-ever annual domestic investment of 24.3 trillion won while preparing for significant global investments to address the anticipated protectionist policies of Donald Trump’s second U.S. administration.
Focus on U.S. Investments Amid Changing Trade Landscape
Hyundai has already committed nearly $18 billion to U.S. operations since 2022, focusing on electric vehicle (EV) production, robotics, and artificial intelligence. In light of Trump’s proposed universal tariffs of 10-20% on imports, Hyundai is poised to expand its U.S. investments to safeguard its critical market, which accounts for 25% of global sales.
Key ongoing U.S. investments include:
- EV Production Facilities: $12.6 billion for the Hyundai Motor Group Metaplant America (HMGMA) and two battery joint ventures.
- Future Technologies: $5 billion allocated to robotics, autonomous driving, and advanced air mobility.
- Supplier Integration: $250 million to support local suppliers.
Additionally, Hyundai Steel, a subsidiary of the group, is considering a 10 trillion won investment in a local steel plant. If realized, this would bring Hyundai’s total U.S. investments since 2022 to 36 trillion won.
A view of Kia’s Georgia plant.
Increasing U.S. Production Capacity
Hyundai plans to raise its U.S. production ratio to 70% by expanding the HMGMA facility to produce 500,000 vehicles annually. Combined with the Alabama plant’s 330,000 units and Georgia’s 350,000 units, Hyundai’s total U.S. production capacity would align with its 2024 domestic sales of 1.7 million vehicles.
Furthermore, Hyundai intends to reinvest its projected tax credits from the Inflation Reduction Act (IRA)—estimated at $670 million in 2025 and rising to $2 billion by 2027—into R&D and infrastructure projects in the U.S.
Hyundai’s robotics subsidiary, Boston Dynamics, is also scheduled for a Nasdaq listing in early 2025, potentially boosting U.S. investment opportunities.
This file photo, provided by Hyundai Motor Group, shows Hyundai Executive Chair Euisun Chung (2nd from L) inspecting a Hyundai plant in the Indian city of Chennai on Aug. 8, 2023. (Image courtesy of Yonhap)
Expanding Into Emerging Markets
Hyundai is accelerating investments in emerging markets such as India, Southeast Asia, and the Middle East:
- India: 3.2 trillion won by 2032 to modernize facilities and expand EV production. The acquisition of GM’s Pune plant, with an additional 1 trillion won investment, will raise Hyundai’s total Indian production capacity to 1.1 million vehicles annually.
- Southeast Asia: In Indonesia, Hyundai has invested $1.5 billion in a 150,000-unit EV plant and allocated 430 billion won for its Singapore innovation center.
- Middle East: A 730 billion won joint investment with Saudi Arabia’s Public Investment Fund (PIF) will establish a semi-knockdown (CKD) assembly plant in the region.
This photo provided by Hyundai Motor Group shows an electric vehicle production line at Hyundai Motor Group Global Innovation Center Singapore. (Image courtesy of Yonhap)
Strategic Vision for Long-Term Growth
Hyundai Motor Group Chairman Euisun Chung emphasized the company’s focus on staying competitive through bold investments in EVs, cutting-edge technologies, and localized manufacturing. “We are committed to leading market innovation while addressing the challenges posed by shifting global trade dynamics,” Chung stated.
These investments underscore Hyundai’s strategic pivot to mitigate trade risks while capitalizing on opportunities in emerging markets, positioning the company as a leader in the global automotive industry.
M. H. Lee (mhlee@koreabizwire.com)
