Hyundai Motor Group, a South Korean automaker, said it will spend $3.2bn (4.1 trillion won) to produce green cars and cut factory emissions.
The Group announced an investment plan aimed to make Hyundai as one of the world’s four manufacturers of green cars.
2.2 trillion won will be spent on developing hybrid and hydrogen fuel cell vehicles, while 1.4 trillion won will be spent on improving the fuel efficiency of engines and transmissions.
Hyundai, which plans to establish a mass production system for green vehicles by 2012, will also spend 500bn won to reduce carbon emissions by its factories by six per cent.
The company earlier this month launched the Elantra, its first hybrid car, although it is currently only available in South Korea. A global roll-out of the model is expected by next year.