SEOUL (dpa) – Hyundai Motor Group said Tuesday it was planning to invest almost 81 trillion won (73 billion dollars), mostly in production and research and development, by the end of 2018.
The company last week forecast low growth in 2015, which observers attributed in part to a lack of production capacity.
Around 49.1 trillion won was to go towards new and expanded factories, and another 31.6 trillion to research and development, the company said.
Around three quarters would be invested overseas, a spokeswoman said.
Hyundai and its sister company Kia, which make up South Korea’s largest car maker and the world’s number five, last week said 2015 would show the slowest growth in almost a decade.
Combined production was to reach 8.2 million units, up 2.5 per cent from 2014, Chung Mong Koo, chairman of the joined companies, said in a New Year’s speech.
The company was running out of production capacity, financial news agency Bloomberg said at the time, citing industry experts.
It is also facing increased competition, notably from Japanese manufacturers, whose exports are made more price-competitive by a weakening yen.
Hyundai has agreed to buy a plot of land near Seoul for 10.5 trillion won, and has said it plans to build a production facility and new corporate headquarters.
Hyundai and Kia have also announced new factories in China and Mexico.
The two new plants in China will take its factories in the country up to five, but are not due to come online until 2018.
The joined companies have said they plan to focus on the development of electric cars, and Hyundai hopes to have its first battery-powered car on the market within the next year.