Hyundai, Kia to invest $16.5 billion to boost production of electric vehicles

Both Hyundai and Kia intention to promote 3.23 million EVs a 12 months globally by 2030.

By : HT Auto Desk
Updated on:
18 May 2022, 04:55 PM

File picture of Hyundai brand (AP)

Hyundai Motor Company and its affiliate Kia plan to spend 21 trillion gained or $16.5 billion to spice up the manufacturing of electrical autos in South Korea. The funding contains institution of latest manufacturing unit that may step by step have the capability to make round 150,000 vehicles a 12 months. Both the automakers intention to extend annual EV manufacturing within the nation to 1.44 million items by 2030 from an anticipated 350,000 items this 12 months.

That forecast 1.44 million output would account for about 45% of each Hyundai and Kia’s deliberate international EV manufacturing quantity by then. The new manufacturing unit in South Korea for purpose-built autos will probably be situated inside Kia’s current Hwaseong manufacturing website, and its building is anticipated to start within the first half of 2023, whereas industrial manufacturing will begin within the second half of 2025.

(Also learn | Hyundai installs 10-metre-tall Namaste structure in Delhi; represents its vision)

Purpose constructed autos are particular objective autos which can be usually based mostly on small- to medium-sized vans as a result of they use the identical chassis, start-of-production and time-to-market for brand new fashions is usually shorter. Both Hyundai and Kia intention to promote 3.23 million EVs a 12 months globally by 2030, concentrating on a 12% share of the worldwide EV market.

In a separate growth, Hyundai can also be planning to construct a brand new electrical automobile meeting plant in southern Georgia. It added that the carmaker Georgia EV manufacturing unit is a part of the $7.4 billion funding plans that Hyundai has lined up for the US. Hyundai Motor Group, the proprietor of each the Hyundai and Kia manufacturers, acknowledged final 12 months its intention to speculate billions within the US by 2025, which intends to cowl EV vegetation, hydrogen refuelling stations in addition to flying taxis.

Hyundai’s announcement of constructing a brand new electrical automobile manufacturing unit in Georgia comes at a time when US President Joe Biden has been pushing for extra investments in electrical autos and EV associated suppliers.

(with inputs from Bloomberg)

First Published Date: 18 May 2022, 04:54 PM IST

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