The plan, which Hyundai said encompasses autonomous, connected and electric cars as well as technology for ride-sharing, comes after the automaker and two of its affiliates announced an investment of US$1.6 billion in a venture with US self-driving tech firm Aptiv.
“The self-driving market is a golden market to revitalise the economy and create new jobs,” Moon said in a speech at Hyundai Motor’s research centre near Seoul. But some experts question whether targets set by the government and the automotive group, which also includes Kia Motors Corp, are realistic given the technological and cost challenges and the lack of home-grown technology.
“Hyundai has to buy technology from someone else because it lacks software technology. Even though it has a lot of cash, this could become a financial burden if its earnings deteriorate,” Esther Yim, an analyst at Samsung Securities, said.