Seoul, June 12: Hyundai Motor Group said on Monday 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 said it will also receive dividends from its Indian operations, reports Yonhap news agency. General Motors Announces To Integrate Tesla Charging Standard in Its Upcoming EVs.
"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.
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.
Hyundai Motor plans to complete a 150,000-unit-a-year EV plant in its main Ulsan plant, 299 kilometers southeast of Seoul, by 2025.
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. Air Pollution’s Leading Cause Is Rising Number of Vehicles on Road With Increased Emission Levels, Says Indian Institute of Toxicology Research.
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.
(The above story first appeared on LatestLY on Jun 12, 2023 04:14 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).