Hyundai commits $17 billion to tackle electric, driverless cars

Bloomberg Sydney | Updated on December 04, 2019

File photo   -  REUTERS

Hyundai Motor Co will spend 20 trillion won ($17 billion) over the next six years on new technology in a bid to transform itself into a producer of electric and autonomous cars.

Announcing its strategic plan to 2025, the South Korean company pledged to spend almost half the new money on electrification. Autonomous driving will soak up 1.6 trillion won of the total, Hyundai said.

The new investment forms part of a surge in spending at the company, which like carmakers worldwide faces an expensive new era of lower-emissions, battery-powered vehicles. Rivals such as Volkswagen AG have also pledged tens of billions of dollars in investments in electrification.

If successful, the plan should create a more profitable business with a global market share of 5 per cent in 2025, up from 4 per cent in 2018, the company said.

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Shares of Hyundai rose 2.1 per cent at 10:40 am in Seoul.

Published on December 04, 2019

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