Hyundai to boost R&D spending, focusing on fuel economy

Hyundai Kia Automotive Group, Koreas biggest carmaker, announced the early mass production of low-carbon cars as part of a new long-term growth strategy. Its hybrid vehicle technology, part of a rapidly growing market which is likely to reach one to 1.5 million vehicles worldwide in 2010, is said to be nearing mass production. The company has made an ambitious move to secure its position as an eco-friendly producer by expanding its overall hybrid capacity to 30,000 vehicles by 2010. It is planning to launch the world’s first liquefied petroleum gas-based hybrid edition of the Avante sedan in 2009 and begin mass production during the second-half of 2009, sooner than previously planned. The group will also offer a hybrid version of the Sonata and Lotze sedans in 2011. By 2018, Hyundai plans to mass produce 500,000 hybrid cars per year. The company has also expanded its global research and development (R&D) budget, with an emphasis on improving the fuel economy of Hyundai and Kia vehicles. For 2008, Hyundai Motor has budgeted 1.74 trillion won (US$1.5 billion) on R&D, or about 5.2% of total company spending, from 1.48 trillion won (US$1.28 billion) in 2007. (September 1/8/15, 2008)