Hyundai Motor Co, a South Korean automotive manufacturer, has recently announced the commencement of the construction of a research & development center in Singapore. The center will house a small-scale EV (electric vehicle) production facility.
In the groundbreaking ceremony held on the development of a center, Lee Hsien, Singapore Prime Minister, reportedly stated that the new facility may have the capacity to produce over 30,000 EVs per year by 2025, as well as represent a $295 million (S$400 million) investment.
In Singapore, the car prices are highly expensive. Moreover, the region has no auto manufacturing capacity. Amid these rising challenges, the city-state had previously set significant plans to discontinue the production of petrol vehicles by 2040.
PM Lee Hsien has further stated that various activities have currently become rampant in the Singapore automobile industry. Adoption of a few mechanical parts, different supply chains, and more electronics in electric vehicles play a key role in the advancement of the industry in Singapore.
People with knowledge of the matter have cited that the facility is targeting to reach 30,000 units; however, the exact capacity is yet to be determined. The statement further added that the facility construction is expected to be completed by the end of 2022.
The recent announcement for the construction of the R&D center in Singapore happened in line with the discontinuation of Dyson’s plan to develop an electric vehicle in the region, initially announced in 2019, expressing that it is not commercially viable.
The city-state is planning to phase out diesel and petrol vehicles by 2040 and invest in electrification to reduce the level of greenhouse gas and climate change.
Hyundai has also stated that the new Singapore facility will target to achieve carbon neutrality through the adoption of hydrogen and solar energy. Moreover, the company will deploy technologies such as robotics and artificial intelligence as well as include customers’ test drive track in the facility.