Hyundai Motor has announced an unprecedented investment in research and development, allocating a record 6.7 trillion won, or approximately $4.6 billion, for the year. This substantial investment underscores Hyundai's commitment to advancing technologies such as AI-assisted autonomous driving amidst a challenging geopolitical and business landscape. Executive Vice President Kim Heung-soo disclosed this strategic move at the CES tech trade show held last month in Las Vegas.
The decision to boost the R&D budget marks a significant milestone for Hyundai as it navigates through complex global challenges. Despite facing geopolitical and business headwinds, the company remains steadfast in its pursuit of innovation. The investment primarily targets advancements in autonomous driving and other cutting-edge technologies, ensuring Hyundai stays competitive in the rapidly-evolving automotive industry.
"Hyundai Motor Group is exploring innovative approaches with AI technologies in various fields such as robotics, autonomous driving and smart factory," stated Executive Vice President Kim Heung-soo.
The announcement comes on the heels of Hyundai's impressive performance in North America, where sales increased by 10% in 2024. However, this rise in sales does not directly correlate with the R&D investment. Instead, the substantial funding serves as a proactive measure to address the multifaceted challenges the company faces, including geopolitical tensions and evolving business dynamics.
Hyundai's focus on AI-assisted autonomous driving technology highlights its strategic direction towards future mobility solutions. By investing heavily in research and development, the company aims to lead in innovation and maintain its competitive edge against formidable rivals, particularly from China. This R&D expenditure is not only a record for Hyundai but also represents a pivotal step in strengthening its technological capabilities and market presence.
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