Hyundai Investing $35 Billion In Auto-Driving And Electric Cars
The race of the development of modern and highly-advanced cars is still hot.
A good proof of that is Hyundai. Apparently, this car manufacturer did never have the idea of being left out in the arena of electric and intelligent cars.
Hyundai, being the biggest car manufacturer in South Korea, told just this Tuesday that it has intentions in investing 41 trillion won (or approximately $35 billion) to the world of “future mobility technology.” Furthermore, it also indicated that this plan is going to roll in 2025.
With such kind of monetary capital, this claim of Hyundai should never be shrugged off. After all, it is already at the level in which it can be compared to the capitalization that other companies had for this particular endeavor.
For instance, Volkswagen is planning to invest $35 billion in the next five years to develop hybrid and electric cars on their lineup. Specifically, Volkswagen wants to have an electric version of every car model and series that they have right now.
Meanwhile, Hyundai revealed that it is planning to release twenty-three (23) variants of electric vehicles by the end of 2025. If this will be fulfilled, these electric cars would be in the same number as the current lineup of Hyundai.
Interestingly, this project will not be shouldered by Hyundai alone. Apparently, the car manufacturer got a powerful backer to pursue this particular endeavor. Of course, this is in the form of the South Korean government, which has pledged to provide support to the efforts of Hyundai.
Accordingly, the government of South Korea committed to providing up to 2.2 trillion won ($1.9 billion) to ensure that the plans of Hyundai to develop electric and hybrid cars will be fully realized.
Moon Jae-in, the president of South Korea, explained why he had the government made a partnership with Hyundai.
“Our goal is to become the number one country for future car competitiveness by 2030,” Jae-in said in a speech he gave at a particular research center in Hyundai in South Korea.
He also emphasized that he wants South Korea to be the first country that will commercialize these self-driving cars, and make them accessible for its residents.
“It (South Korea) will be the first in the world to commercialize autonomous driving,” the president said.
President Jae-in mentioned that in the next decade, one-third of the cars that are plying on the roads of South Korea is already capable of autonomous driving. He also wants these vehicles to be hydrogen or electric-powered so that they will not be dependent anymore on conventional fuel sources.
Of course, the race for being the first manufacturer to develop autonomous cars is currently underway. The competition is global and involves most of the top caliber car developers in the world today. Even non-commercial companies are said to take part in this race. It seems that nobody wants to be left behind, as these technologically advanced cars will define the future of transportation.
A good example is the SoftBank of Japan, which has already invested billions of dollars to GM and Toyota. This particular partnership of these three giants was forged to achieve the same goal as Hyundai–and that is to develop fully automated and driverless vehicles. Meanwhile, Baidu and Ford had already joined in tandem so that they can develop intelligent cars in China.
Volkswagen, on the other hand, already started test runs on their electric cars. These electric cars are said to be equipped with automated driving technology. Certain portions of the Hamburg street was used by the company to test the reliability of these cars.
The pioneer of these recent developments is Tesla, which is owned by the Space X founder Elon Musk.
However, it is indeed noticeable that this race is not for those who don’t have large capitals on their hands. The development of technology for these cars require billions or trillions of dollars. It is for this reason why several manufacturers have to team up with private investors, banks, and other institutions to fund their research in this particular sale.
Market players told that current global sales for automotive are currently experiencing a decrease. With the amount of money that is needed to develop hybrid cars, it is still uncertain if the profits of these car manufacturers can catch up.