Last week, Hyundai announced plans of investing close to $40 billion within the next five years to make significant technological progress. This included about $17.7 billion for research and development and $12.4 billion for other upgrades. In addition to this, the company is also expected to dedicate at least $2.9 billion towards electric vehicles and $2.2 billion towards technology such as autonomous driving and connection technology.
Hyundai aims to achieve an operating profit margin of seven per cent within the next four years. This might be difficult, considering that the company has been facing a slack in sales in the world’ biggest automotive market, China. Earlier in February, Reuters reported that Hyundai was “reeling from tumbling sales” in the Chinese market and that the CEO may be planning on “addressing overcapacity at its old factories in China.”
Alongside Kona Electric the company also plans to develop its own all-electric models.
Nevertheless, Hyundai has big plans. In addition to allocating money for technological advancements, the company is also putting efforts to mark its presence in the electric car arena, boldly stating that it aims at being in the top three EV manufacturers in the coming years. Alongside hybrid models in its line-up such as the Ioniq, the company aims at developing its own all-electric models.
Back in 2016, during the summer Olympics, Hyundai had introduced self-driving vehicles. This was followed by the testing of an electric ridesharing system with its Ioniq models in Amsterdam in 2017. In addition to this, Hyundai’s self-driving plans further include the trial of an “autonomous robot taxi” fleet in South Korea by 2021.
In 2017, Hyundai showcased an electric ridesharing system with Ioniq models.
Alongside its plans for the future, Hyundai also plans on dedicating a major chunk of its investment towards SUVs in light of its rising demand globally than other models. The company’s announcement comes at a promising time as the Kona has been recognised as the best subcompact SUV by Consumer Reports.