Hyundai Motor Group is planning to invest $73 billion over four years to expand its capacity, build new a headquarters and develop new vehicles. The group – including 57 affiliates like Hyundai Motor Co and Kia Motors Corp. -- unveiled its investment plan as the South Korean government, led by President Park Geun-hye, wants local companies with large cash reserves to spend more on investment, employment and dividend payments.
The investment includes KRW49.1 trillion on capital investment and KRW31.6 trillion on research and development by 2018. The disclosure came following announcements by Hyundai and Kia to build plant in Mexico and China in the next few years, which means the carmakers would soon expand their capacity.
The South Korean carmakers would significantly hike spending to develop more eco-friendly vehicles and autonomous cars over the next four years.
In a statement, Hyundai Motor Group said that around three-quarters of the investment would be made within South Korea to "greatly contribute" to re-energizing the country’s economy.
A significant portion of the allocation may likely be used to pay for the plot of land that three units agreed to purchase for KRW10.55 trillion.