Hyundai Motor Group Commits To $18 Billion BEV Investment By 2030

Already using the transition to BEVs to leapfrog established mass-production rivals, South Korea’s Hyundai Motor Group today committed to spending an extra $18.2 billion (24 trillion South Korean won) by the end of the decade to boost its EV production.

With its eyes on a top-three place in BEV production by 2030, the Hyundai Group (which controls the Hyundai, Kia and Genesis brands) announced a target of 1.51 million EVs a year for its Korean-built BEVs by the end of the decade.

That figure averages to $2.6 billion a year on top of the $23.6 billion it has already-committed R&D funding for new vehicles, taking it to a total of $41.8 billion in BEV commitments.

By comparison, Tesla claims to have committed $100 billion on EV and plant R&D development by 2030, though that should be treated with skepticism. Its total R&D spend bumbled along at less than $1.5 billion a year until 2020, and only grew to $3.1 billion last year.

The entire auto industry spent $124 billion on R&D last year, according to Statistica, and $116 billion in 2021, but is committed to spending $1.2 trillion on EV R&D between now and 2030.

Of the R&D commitments on paper for the years running up to 2030, the largest is Toyota, which has commited to spending $56.4 billion, with the Volkswagen Group’s $55 billion, to cover its Volkswagen, Audi, Bentley, Skoda, Seat, Porsche, Lamborghini and Volkswagen brands, running a close second.

The rider is that not all of that R&D budget is committed to BEV and BEV factory and supplier development, as is the case for Hyundai and Tesla.

US automakers Ford ($43 billion) and General Motors (27.5) are deeply committed to the BEVs-by-2030 program, while other major players include the world’s largest combustion-engine maker Honda ($37.8 billion), BMW ($26.5 billion) and China’s SAIC ($24 billion).

BYD’s announced commitments of only $10 billion is surprisingly low, as is Mercedes-Benz ($17 billion), Nissan (12.6 billion) and Renault ($9.4 billion).

Stellantis has only dedicated $11.5 billion to EV R&D to spread across the Fiat, Peugeot, DS, Citroen, Opel, Maserati, Alfa Romeo, Lancia, Jeep, RAM, Dodge and Chrysler brands.

Hyundai’s statement confirmed it would have 31 new BEV models across its three brands, and is planning a new production plant in Hwaseong, south of Seoul.

There will be 17 BEVs between Hyundai and Genesis by 2030 and 14 more from Kia. The first of the new BEV models will be Kia’s EV9 crossover, to be followed next year by Hyundai’s Ioniq 7 next year.

Hyundai has already used its BEVs to boost both its sales and image, with back-to-back World Car of the Year awards (with the Ioniq 6 this year and the Ioniq 5 last year).

It has collected a slew of other awards this year, including the World Design Award and the World Electric Vehicle Award for the Ioniq 6, while the related Kia EV6 GT won the World Performance Car Award.

But the 2030 sales target would soak up a third of all projected BEV production at the end of the decade, and the Group is backing that by investing to upgrade South Korea’s “EV ecosystem”.

“We aim to upgrade Korea’s EV ecosystem and strengthen its role as a hub for driving innovation in the global automotive industry,” the statement said.

“It is also expected to promote a virtuous cycle of domestic EV production, R&D, infrastructure and related industries.”

The Group does not have a North American plant, and has been lobbying the US Government for changes to the Inflation Reduction Act so that it doesn’t need to build BEVs in the US for its customers to claim zero-emission subsidies.