Hyundai Motor Group has unveiled a record 85.8 billion dollar investment plan that will reshape South Korea’s industrial landscape over the next five years.
The company intends to channel a large share of the funds into fields such as AI, robotics, electrification, software-defined vehicles, and hydrogen technologies.
Hyundai presents the roadmap as evidence of an agile response to a global environment in which export strength and technological leadership matter more than ever.
A major part of the strategy centres on turning innovation into export gains. The group expects the investment to raise overseas shipments of South Korea-made vehicles by more than thirteen percent by 2030.
A plan that emerges shortly after Seoul concluded a new trade agreement with Washington that lowers tariffs on South Korean vehicles to fifteen percent instead of the previous twenty-five percent. The rate remains much higher than the earlier 2.5 percent applied before the renegotiation.
Hyundai’s announcement mirrors a wider industrial push across the country. Samsung Group recently committed 310 billion dollars for a similar period, largely focused on AI development.
Both companies aim to reinforce the nation’s position in advanced technologies and secure long-term competitiveness at a time when global supply chains and industrial alliances are rapidly shifting.
Hyundai, together with Kia, sold more than 7.2 million vehicles globally last year.
The company views its new investment programme as a foundation for future export growth and a signal that South Korea plans to anchor its economic future in next-generation technologies instead of relying on past models of industrial expansion.
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The global 5G automotive market is expected to grow sharply from $2.58 billion in 2024 to $31.18 billion by 2034, fuelled by the rapid adoption of connected and self-driving vehicles.
A compound annual growth rate of over 28% reflects the strong momentum behind the transition to smarter mobility and safer road networks.
Vehicle-to-everything communication is predicted to lead adoption, as it allows vehicles to exchange real-time data with other cars, infrastructure and even pedestrians.
In-car entertainment systems are also growing fast, with consumers demanding smoother connectivity and on-the-go access to apps and media.
Autonomous driving, advanced driver-assistance features and real-time navigation all benefit from 5G’s low latency and high-speed capabilities. Automakers such as BMW have already begun integrating 5G into electric models to support automated functions.
Meanwhile, the US government has pledged $1.5 billion to build smart transport networks that rely on 5G-powered communication.
North America remains ahead due to early 5G rollouts and strong manufacturing bases, but Asia Pacific is catching up fast through smart city investment and infrastructure development.
Regulatory barriers and patchy rural coverage continue to pose challenges, particularly in regions with strict data privacy laws or limited 5G networks.
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China’s Ministry of Industry has announced the inclusion of 20 cities, including Beijing and Shanghai, in a pilot initiative focused on ‘vehicle-road-cloud integration’ for intelligent connected vehicles. The program aims to establish a standardised and unified system by 2026, facilitating the deployment of smart-connected vehicles across the nation, according to a statement released by the ministry on Wednesday.
Why does it matter?
Recently, China announced increased policy support to accelerate the development of smart connected vehicles, which experts believe could make the country the world’s largest market for self-driving cars. As part of these efforts, the Ministry of Industry and Information Technology plans to allocate 100 million 11-digit mobile network numbers to enhance communication among vehicles and with back-end management systems. According to McKinsey & Co., projections estimate that China’s autonomous vehicle market could exceed $500 billion in revenue by 2030.
