Hyundai Motors Pledges $17 Billion on Self-Driving Vehicles

Recently, Hyundai Motors stated it would devote 20 trillion won (S$22.9 billion) over the next six years.

The investment is mainly on new technology to assist and improve the switch over to electric and self-driving vehicles.

On the other side, South Korean firm guaranteed to spend almost half of its new money on electrification as it announces its strategic plan to 2025.

Moreover, the self-sufficient driving will submerge up to 1.6 trillion won on its overall, Hyundai stated last Wednesday, December 4, 2019.

The investment forms a part of the rise in spending at Hyundai. At the same time, rivals international faces an expensive future of lower-emissions, battery-powered vehicles.

Meanwhile, competitors such as Volkswagen have also undertaken tens of billions of dollars with venture capital in electric vehicles.

If successful, the strategy should generate a more profitable industry with a global market share of 5 percent in 2025, higher from the previous 4 percent in 2018, according to Hyundai.

Traditional Carmakers are in the Same Path of Tactics

However, most traditional carmakers are advancing in the same direction. In addition, all-electric competitors such as Tesla have a technological head start.

The moves indicate aggressive pressures aren’t possible to subside in the next era.

Over the next three years, German carmakers are determined to invest US$45 billion. The investment has to do with electric vehicles.

On the flip side, General Motors is pushing ahead with a ground plan to sell 20 EV models by 2023.

Elsewhere, shares of Hyundai increased by 0.4 percent in Seoul. This was after the company indicated it should be more than three times as valuable by the end of the six-year plan.

In 2025, Hyundai wants to broaden its operating margin to 8 percent, ahead from its 2.5 percent last year.

The widening is a level that would make the carmaker be among the most moneymaking manufacturer international.

According to data compiled by a news report, BMW AG has a margin of 9.3 percent while Toyota Motor Corp. has 8.2 percent. Most other global automakers are in the two percent-6 percent range.