Hyundai Motor says it will build its first South Korean EV factory

The brand of Hyundai Motor Firm is pictured on the New York Worldwide Auto Present, in Manhattan, New York Metropolis, U.S., April 13, 2022. REUTERS/Andrew Kelly/File Photograph

SEOUL, July 12 (Reuters) – Hyundai Motor Co (005380.KS) stated on Tuesday it might construct a devoted electrical car (EV) manufacturing facility in South Korea that may turn into its first vehicle plant to open within the nation in virtually three many years.

Manufacturing is because of start by 2025, the corporate’s union stated in a press release, relaying a pledge that the corporate had made in wage negotiations.

Hyundai Motor gave no additional particulars in its assertion.

In Could, Hyundai Motor Group, which homes Hyundai Motor and Kia Corp (000270.KS), stated it might make investments 63 trillion received ($48.1 billion) in South Korea by means of to 2025. learn extra

Hyundai Motor’s unionised staff in South Korea voted this month for a doable strike for the primary time in 4 years over calls for for larger wages. They have been additionally indignant at administration prioritising funding exterior the nation. learn extra

Hyundai Motor, South Korea’s largest automaker, final opened an vehicle manufacturing facility in South Korea in 1996.

Nevertheless it stated in Could it might make investments $5.5 billion to construct full EV and battery manufacturing amenities in Georgia. learn extra

The EV facility in Georgia is scheduled to interrupt floor in early 2023 and start industrial manufacturing within the first half of 2025, in keeping with Hyundai Motor.

“Gross sales of internal-combustion-engine automobiles are scheduled to be banned in sure markets so the brand new EV manufacturing facility is significant to Hyundai Motor’s survival,” stated Chang Moon-su, an analyst at Hyundai Motor Securities, a subsidiary of the automaker.

Hyundai Motor shares have been flat in noon commerce, whereas benchmark KOSPI (.KS11) was down 1.1%.

($1 = 1,310.5000 received)

Reporting by Heekyong Yang and Byungwook Kim; Enhancing by Shri Navaratnam and Bradley Perrett

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