Hyundai to Hike 5-Year Spending 58% to $40 Billion

Hyundai Motor Co. plans to spend 45.3 trillion won ($40 billion) over the next five years on research and development, capital expenditures and emerging technologies and services.

The investment represents an average annual increase of 58% over the most recent five-year period, according to the carmaker.

About 45% ($18 billion) of the new investment is allocated toward product development. The focus will be on growing Hyundai’s Genesis luxury brand and adding SUV/crossover vehicles throughout the Hyundai and Genesis lineup.

One-third of the budget is earmarked for advanced mobility programs, including autonomous and electrified vehicle technologies, car-sharing and other “smart” systems. The remaining 23% of the investment will be spent on manufacturing facilities.

Financial goals include achieving an operating margin of 7% by 2022. By that time, the company intends to more than quadruple its return on investment to 9%.