Hyundai Motor Co. mentioned it should make investments 10.5 trillion gained ($8.5 billion) in 2023 because it strikes to affect extra of its fleet to satisfy rising shopper demand for cleaner automobiles.
The cash might be spent totally on analysis and improvement and on constructing a brand new plant n the U.S., the automaker mentioned.
The 2023 funding compares with a spend of round 8.5 trillion gained in 2022.
The firm on Thursday elevated dividends in an uncommon transfer for the automaker, after working revenue greater than doubled within the October-December quarter.
“Favorable foreign-exchange rates and higher sales of value-added cars led the growth for 2022,” Hyundai Executive Vice President Seo Gang-Hyun mentioned on an earnings name.
He added the worldwide chip scarcity that has hampered automakers since late 2020 ought to ease in 2023. The firm’s advertising prices could rise as competitors intensifies, he mentioned.
Hyundai earlier this month mentioned it goals to promote 4.3 million automobiles globally this yr, or about 10 p.c greater than 2022. Affiliate Kia can be focusing on development of 10 p.c for a complete of three.2 million automobiles.
Combined, Hyundai and Kia rank because the world’s third-largest automaker behind Toyota Motor Corp. and Volkswagen Group.
Hyundai mentioned it expects to have stable again order demand in main automotive markets and forecast sturdy development in electrical car gross sales, together with within the U.S. the place regulatory considerations have clouded its outlook.
The firm is focusing on a 54 p.c leap in EV gross sales in 2023 to 330,000 globally and mentioned it needs its U.S. EV gross sales to climb 150 p.c to 73,000 to account for 9 p.c of its U.S. car gross sales.
It expects a 9.6 p.c leap in general North American car gross sales and a 21 p.c surge in China car gross sales.
Sales in North America rose 21 p.c within the final quarter, whereas quantity slumped 19 p.c in China and Europe gross sales had been little modified.