Hyundai To Reshore $5.9 Billion In Overseas Operations' Money For EV Investments

Hyundai To Reshore $5.9 Billion In Overseas Operations' Money For EV Investments

The group's overseas operations, including Hyundai Motor America, Hyundai Motor India, Hyundai Motor Manufacturing Czech, Kia America, Kia Europe and Kia Slovakia SRO, posted improved earnings results in the 2021-2022 period despite the COVID-19 pandemic.

FPJ Web DeskUpdated: Monday, June 12, 2023, 04:42 PM IST
article-image
Hyundai To Reshore $5.9 Billion In Overseas Operations' Money For EV Investments | File

Hyundai Motor Group on Monday said it will utilise 7.8 trillion won ($5.9 billion) worth of reservation money held by its overseas operations to push forward the group's planned investments in domestic electric vehicle (EV) plants.

Hyundai Motor, its smaller affiliate Kia and auto parts maker Hyundai Mobis will receive $2.1 billion, $3.3 billion and $200 million, respectively, from their operations in the US and Europe in the form of dividends, the group said in a statement.

Hyundai Motor also said it will receive dividends from its Indian operations, reports Yonhap news agency.

"The dividends from their overseas operations will help the three companies cut back on bank loans, which will enhance their financial status and will allow them to make an aggressive investment (in EV plants)," the statement said.

Hyundai's operations post positive earnings

The group's overseas operations, including Hyundai Motor America, Hyundai Motor India, Hyundai Motor Manufacturing Czech, Kia America, Kia Europe and Kia Slovakia SRO, posted improved earnings results in the 2021-2022 period despite the COVID-19 pandemic.

The company also plans to complete a 150,000-unit-a-year EV plant in its main Ulsan plant, 299 kilometres southeast of Seoul, by 2025.

EV developments

In April, Kia began the construction of a 150,000-unit-a-year EV plant inside its existing factory in Hwaseong, just south of Seoul, with a goal to start production in late 2025.

In the same month, the Korean automotive group announced it will invest 24 trillion won in its domestic EV plants and other EV projects by 2030.

The three affiliates will collectively make the investment to help the group become the world's No. 3 EV maker in terms of sales by 2030.

The companies plan to spend most of the planned investments in expanding their existing EV production lines, developing future mobility parts and technologies, establishing EV infrastructure and exploring new EV business opportunities.

Hyundai Motor and Kia plan to release a total of 31 battery-powered EV models by 2030, including the Kia EV9 this month and the Hyundai IONIQ 7 next year.

Hyundai Motor and Kia have set a combined sales goal of 7.52 million units this year, up 9.8 percent from the 6.85 million units they sold last year.

The two together form the world's third-largest carmaker by sales after Toyota Motor Corp. and Volkswagen Group.

On top of the domestic EV plants, the group is building a 300,000-unit-a-year EV and battery plant in the U.S. state of Georgia, with a goal to start production in the first half of 2025.

With inputs from IANS

RECENT STORIES

Hyndai Motor IPO Plan Reveal: Know Price Band & Minimum Bid Along With Key Details

Hyndai Motor IPO Plan Reveal: Know Price Band & Minimum Bid Along With Key Details

Top Stocks To Watch Out For October 9: Glenamrk, Senco, Torrent Power & Others In Focus

Top Stocks To Watch Out For October 9: Glenamrk, Senco, Torrent Power & Others In Focus

RITES Signs MoU With Etihad Rail For Rail Infra Development In UAE

RITES Signs MoU With Etihad Rail For Rail Infra Development In UAE

Mumbai: 20,482 Passengers Travel On Underground Metro 'Aqua' Line On Second Day Till 9 PM

Mumbai: 20,482 Passengers Travel On Underground Metro 'Aqua' Line On Second Day Till 9 PM

Mumbai: MMRCL Issues RFP For 4.2-Acre Nariman Point Plot; First Major Transit-Oriented Development

Mumbai: MMRCL Issues RFP For 4.2-Acre Nariman Point Plot; First Major Transit-Oriented Development