Would like to develop a self-driving car, with Hyundai Motor Group unveils $35 billion plan

SEOUL (Reuters) – Hyundai Motor Group said that it plans to invest 41 trillion won ($35 billion) in the mobility and automotive technology in the year 2025, some of which will be referred to a specialist for an ambitious attempt to bring the competitive edge in self-driving cars, which has also received government backing.

The south Korean President, Moon Jae-in delivers a speech during a ceremony in the country’s vision to lead the future of mobility, tech at Hyundai Motor Namyang R&D Center in Hwaseong, South Korea, on October 15, 2019. Yonhap, via REUTERS

The plan, which Hyundai said it comprises of organic, attached, and electric cars as the technology for ride-sharing, is emerging from the automaker and two of its subsidiaries announced an investment of $1.6 billion in a joint venture with the U.S.’s self-driving tech company, Aptiv (APTV.(N).

The south Korean government is also on board, with the unveiling of more funds to autonomous vehicles, and its President, Moon Jae-in of the, declaring on Tuesday that he expects to see self-driving cars to account for half of all new cars on the roads by 2030.

“The self-driving market, a gold market, and to revitalize the economy and create new jobs,” Moon said in a speech at Hyundai Motor (005380.CS) research center near Seoul, south korea.

The government plans to spend 1.7 trillion won between 2021 and 2027 on self-driving technology. He expects the Heat to get to the start of level 4, or a fully-autonomous cars to fleet customers, in a bid for the 2024 games, and for the general public, through to 2027, with a ministry of industry official, told Reuters.

However, some experts question whether or not the targets set by the government and the automotive group which includes Kia Motors Corp (000270.KS), are unrealistic in view of the technological and cost challenges and, in the absence of home-grown technology.

In a 45-page report on ” the future of car technology, which the government approved in South Korea was in a number of key areas that are necessary for self-driving cars, such artificial intelligence, sensors and logic chips.

“Hyundai has to buy the technology from someone else, because of the lack of software and technology. Even though it is a lot of money, this can be a financial burden as profits deteriorate,” Esther Yim, an analyst at Samsung Securities, said.

Other analysts noted that the prospects for self-driving cars are all very, very murky.

General Motors Co. (GM.N) a self-propelled unit Cruises, said in July it was delaying the commercial implementation of the s along with the objectives of 2019 at the latest, tech companies and car manufacturers are acknowledging it will take more time and money than they had expected to make autonomous vehicles will be safe for unrestricted use on public roads.

The south Korean government has said that the establishment of a regulatory and legal framework for autonomous cars and the safety of all the questions they generate as a result of 2024.

It is also aimed at establishing the technological and legal basis for, the demonstration of the flying cars in the year 2025. Hyundai Motor’s executive vice-chairman Euisun Chung said last month that the company is looking into the development of flying cars.

Hyundai has also received the government’s support for hydrogen-fuel-cell-driven cars, the Moon, bubbles of hydrogen power of the future, the bread-and-butter” of east Asia ‘ s No. 4 the economy and declaring himself an ambassador for the technology.

Reporting by Hyunjoo Jin; Editing by Gerry Doyle and Edwina Gibbs

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