Hyundai Motor Group Executive Chair Chung Euisun speaks during the carmaker's New Year's event at Hyundai Motorstudio Goyang in Gyeonggi Province, Monday. Yonhap

Hyundai Motor Group announced a plan, Thursday, to invest 24.3 trillion won ($16.67 billion) in Korea this year, in a preemptive move to develop cutting-edge mobility solutions, focusing on electrification, software-defined vehicles (SDVs), and hydrogen energy.

The figure represents a 19 percent increase from the previous year and marks the largest annual investment in Korea. The carmaker's decision to allocate a larger portion of its investment budget is focused on securing the group's next growth engines, particularly amid growing market uncertainties both at home and abroad.

The automaker plans to allocate 11.5 trillion won for research and development in the key growth areas highlighted above. As part of this initiative, Hyundai Motor aims to introduce a full lineup of 21 electric vehicle (EV) models by 2030. Similarly, Kia intends to expand its EV lineup to 15 models by 2027 as part of the group's broader electrification strategy.

Both carmakers will also intensify their research to ensure a smooth transition to SDVs by developing core technologies for in-vehicle software systems.

Hyundai Motor Group will also ramp up efforts to develop hydrogen-powered buses and trucks, while building more hydrogen fueling stations. Last year, Hyundai Motor announced plans to build a complete hydrogen energy value chain from production to transportation, highlighting the importance of the gas as a renewable resource in the pursuit of carbon neutrality.

Shown above are Kia's lineup of Platform Beyond Vehicle (PBV) models. Courtesy of Kia

In terms of production, the group will keep investing capital to ensure the timely construction of Kia's EV Plant in Hwaseong, Gyeonggi Province. The facility is expected to be completed in the latter half of 2025. It will be used to manufacture the carmaker's strategic Platform Beyond Vehicles (PBVs) — modular cars with a flexible chassis, enabling customers to swap the vehicle's upper body with different modules based on their specific driving needs.

Both carmakers will also expand investments to develop eco-friendly auto parts for EVs and hybrid vehicles, aiming to strengthen their commitment to sustainability.

Hyundai Motor Group will also invest 800 billion won in autonomous driving and artificial intelligence (AI) — both of which are recognized as the group's key growth areas for the future.

"We will continue to secure future growth engines through consistently aggressive investments, unaffected by any external uncertainties, and driven by a spirit of change and innovation," an official at Hyundai Motor Group said.

"Our latest investment initiative is part of our efforts to strengthen communication with key stakeholders, including shareholders, customers, and clients."

Earlier this week, Hyundai Motor Group Executive Chair Chung Euisun emphasized the importance of addressing market uncertainties and overcoming crises, noting that the company has grown significantly stronger as a result.

The statement was made in the context of escalating geopolitical risks associated with the incoming Donald Trump administration in the United States, as well as declining customer confidence due to unfavorable macroeconomic conditions both at home and abroad.