Hyundai & Kia will greatly increase its R&D investments starting this year. The company is forecast to become No. 3 in the automotive industry in terms of annual R&D investments. In particular, it is expected to lead the next-generation automotive technology development along with Volkswagen and Toyota. Although it is No. 5 in global sales, it has remained in the lower ranks in terms of R&D investments. Now Hyundai & Kia has laid the foundation for ‘completely changing’ its technological competitiveness. According to industry insiders on January 19, Hyundai & Kia’s average yearly R&D investments (KRW6,775 billion) in the next 4 years are No. 3 in the global automotive industry following Volkswagen and Toyota. The company is planning to invest a total of KRW27.1 trillion in R&D from 2015 till 2018.
According to the R&D statistics (EU R&D Scoreboard) recently published by the European Commission (EC), Volkswagen invested the largest amount (about KRW14,720.5 billion) in R&D in the automotive industry (as of 2013), followed by Toyota (KRW7,859.6 billion) and Daimler (KRW6,742.8 billion. Looking at the R&D funds for 2015 only, Hyundai & Kia rapidly rose to the No. 3 position just below Toyota in the industry. The company invested KRW2,219.3 billion in R&D in 2013, ranked No. 15 in the automotive industry including automobiles and parts. However, in just 2 years, its R&D investments increased more than three times, and the company became a top ranker in quantitative terms. As a result, its competition with other auto makers in Germany, Japan and the US over next-generation technologies is forecast to intensify further.
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