Hyundai Motor Co. has announced a 10.5 trillion won ($8.5 billion) investment plan through 2023 to advance its clean-emission vehicles and technology. Hyundai disclosed this in an exchange filing in its home market of South Korea on Thursday. Hyundai has repeatedly stated that it wants to be more than just a player in the EV game, and it offers EVs under the Ioniq brand name in addition to conventional vehicles.
The company plans to sell up to 43 lakh vehicles in 2023, which is approximately 10% more than it sold in all of 2022. And, as EV adoption continues to rise globally, a significant portion of the sales may come from EVs. Kia Corp, a subsidiary, is also betting big on EVs, with plans to sell over 32 lakh vehicles this year.
Hyundai and Kia are the world’s third largest automakers, trailing Toyota and Volkswagen AG.
However, when it comes to EVs, Tesla has a commanding lead over all competitors and expects to sell around 20 lakh EVs this year alone. However, while Tesla has gained momentum as a result of recent price cuts announced in key markets such as China and the United States, Hyundai has found the going tough in many parts of the world. In the United States, the company is working to alleviate concerns about President Joe Biden’s climate and energy bill.
Over a three-month period, sales in China fell 19%, while figures in Europe remained relatively flat. Russia emerged as a major concern after Hyundai suspended operations in the country in 2022 as a result of Russia’s invasion of Ukraine. In the most recent quarter, sales fell by approximately 65%. However, the company remains optimistic, aiming for an 11.5 percent revenue increase in 2023.
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