Hyundai will invest 3.5 trillion dollars in vehicle technology

Hyundai will invest up to 3.5 trillion dollars in autonomous mobility and all kinds of technologies surrounding the automotive world, all of it by 2025…

In a recent announcement, the giant carmaker, Hyundai, has revealed the enormous investment it intends to make by 2025. The idea is to use all this economic power to advance and develop automotive technology, especially as regards autonomous mobility, electric power, and transport services for large cities.

The South Korean government fully supports Hyundai in this initiative, with the country’s own President, Moon Jae-in, declaring that self-driving cars could account for half of all vehicle sales by 2030. He also believes this news will generate many new jobs, which is only good news for the population.

The government is in fact so interested in autonomous driving and electric power technology that it plans to spend up to 1.4 trillion dollars on this technology between 2021 and 2027, and expects Hyundai to launch its first vehicles with level 4 autonomous driving by 2024 and to the general public in 2027.

Achieving the results the South Korean government expects will not be easy. Recently, the body itself set out the key requirements the country needs, in terms of infrastructure and preparation, for quality autonomous driving to become a reality. Among them stood out artificial intelligence, smart chips and sensors.

Some think the targets proposed by the government may not be realistic; however, it is always better to aim higher, so the line of development can be longer, even if the final goal is not in fact reached within the established timeframe.

https://www.youtube.com/watch?v=cz6FDTXjihI

In the words of Esther Yim, analyst at Samsung Securities:

“Hyundai has to buy technology from someone outside the company, because it does not have the necessary level of software. Even if it has a lot of capital, this could result in a failure of its long-term financial plan…”

To prepare the country to incorporate autonomous car technology, the South Korean government will prepare regulatory measures for the autonomous car target set for 2024.