Hyundai Motor pledges $1.1b investment in Brazil through 2032

By Kan Hyeong-woo, The Korea Herald -​ Hyundai Motor Group has vowed to invest $1.1 billion in Brazil as Chung Euisun, the head of the South Korean auto conglomerate, and Brazilian President Luiz Inacio Lula da Silva met at the latter’s presidential office in the capital city of Brasilia on Thursday, officials announced Friday.

Chung said Hyundai Motor Company’s Brazilian office and its local partners will plow the investment into future technology as well as eco-friendly sectors such as hydrogen.

“Hyundai Motor Group is not only about selling cars, but also looking to grow together with Brazil,” said Chung.

Established in 2012 with an annual capacity of 180,000 units, Hyundai Motor’s Brazilian plant in Sao Paulo is the automaker’s only manufacturing foothold in Latin America. The automaker announced a plan to expand the capacity to 220,000 units per year in 2018. The company also operates its regional headquarters in Brazil.

Brazil announced in December last year that the country would offer a total of 5.1 trillion won ($3.8 billion) worth of tax credits and subsidiaries for automakers investing in Brazil’s carbon reduction efforts.

The Brazilian president highlighted that Hyundai Motor was an important company that was growing in the country. The Brazilian government plans to cut greenhouse gas emissions by 50 percent in 2030 and achieve carbon neutrality by 2050.

Acknowledging the Brazilian government’s efforts to go carbon-free, Chung expressed the willingness that Hyundai Motor Group will contribute to any aspects it can help in terms of the hydrogen and eco-friendly mobility sectors.

“Hyundai Motor Group is pushing for a fast-paced automation strategy covering electric and hydrogen vehicles to achieve zero carbon emissions,” said the Hyundai Motor Group chief.

“Hydrogen energy is an important resource that is a key to cope with climate change and can make up for automation.”

According to automotive industry portal MarkLines, Hyundai accounted for about 10.7 percent of the passenger cars sold in Brazil last year as it sold 185,014 units. The Korean automaker became the fourth-largest auto brand in the country in 2023.

Hyundai Motor said it will look to brand itself as a leader in automation in Brazil by launching its popular EVs including the multiple-awards-winning Ioniq 5 and Kona Electric along with Kia’s EV5 in the local market.

The automaker also plans to develop a powertrain suited for hybrid flexible-fuel vehicles optimized for Brazil’s local green mobility innovation.

As Hyundai Motor set up a new unit dedicated to taking charge of the Latin American hydrogen businesses in Brazil at the end of last year, the auto giant is looking to discover new markets for hydrogen-powered commercial vehicles and hydrogen-fueled battery systems in the region.

Meanwhile, Chung met with Carlos Gilberto Carlotti Junior, president of Sao Paulo University to discuss cooperation to conduct joint research and nurture talents in the eco-friendly sector.

The Hyundai Motor Group chief is slated to meet with Tarcisio de Freitas, governor of Sao Paulo, and visit the automaker’s local manufacturing plant to assess the company’s Latin American businesses and check up on the mid- to long-term strategy on Friday local time.

Source: https://www.koreaherald.com/view.php?ud=20240223050478 

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