Hyundai unveils $8.5B spending plan amid EV push

Hyundai plans to invest 10.5 trillion won ($8.5 billion) in 2023 to electrify more of its vehicles to meet growing consumer demand for cleaner cars.

The company said the money will be used primarily for research and development and the construction of a new plant in the United States.

Investment in 2023 is compared to spending of about KRW 8.5 trillion in 2022.

After operating profit more than doubled in the October-December quarter, the company increased its dividend on Thursday in an unusual move for an automaker.

“Favorable foreign exchange rates and increased sales of value-added vehicles drove growth in 2022,” Hyundai Vice President Seo Kang-hyun said in an earnings call.

He added that the global chip shortage, which has plagued automakers since late 2020, should ease in 2023.

Hyundai said earlier this month that it aims to sell 4.3 million units worldwide this year, about 10% more than in 2022. Affiliated company Kia Motors is also aiming for 10% growth, with a target of selling a total of 3.2 million vehicles.

Combined, Hyundai and Kia are the world’s third largest automakers, behind Toyota and the Volkswagen Group.

Hyundai said it expects strong backorder demand in major auto markets and expects strong growth in electric vehicle sales, including in the United States, where regulatory concerns cloud the outlook.

The company targets a 54% increase in global EV sales to 330,000 units in 2023, and a 150% increase in U.S. electric vehicle sales to 73,000 units, accounting for 9% of U.S. vehicle sales. I would like to

Overall North American car sales are expected to grow by 9.6%, while Chinese car sales are expected to surge by 21%.

Sales in North America were up 21% last quarter, while sales in China and Europe were little changed.

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