Now playing
01:24
This tiny electric car is made for the city
The new all-electric Mercedes-EQS
Mercedes-Benz AG
The new all-electric Mercedes-EQS
Now playing
01:05
See the new all-electric EQS luxury sedan from Mercedes
The all wheel-drive, electric Nobe GT100
Nobe Cars
The all wheel-drive, electric Nobe GT100
Now playing
01:27
These tiny cars are cute and easy to park. Will anyone want them?
GM unveils new electric Hummer SUV
GM
GM unveils new electric Hummer SUV
Now playing
00:55
The Hummer electric SUV is coming
Canoo
Now playing
00:59
See this Tesla competitor's new electric pickup
McLaren
Now playing
01:23
The McLaren Artura is an electric hybrid with the speed of a supercar
Now playing
01:01
See Porsche's 911 GT3 on the racetrack
Now playing
01:24
See Ford's new Raptor F-150 in action
Natalia V. Osipova
Now playing
02:28
Review: The Ghost is more modest and simple, but it's still a Rolls-Royce
BMW
Now playing
03:04
This Mini Cooper is built to race. No, really
The 2021 Jeep® Wrangler Rubicon 392
FCA US LLC
The 2021 Jeep® Wrangler Rubicon 392
Now playing
01:11
See Jeep's most powerful Wrangler ever
Volkswagen
Now playing
00:50
See the Golf R, VW's most powerful Golf ever
JAMES LIPMAN/ SSC North America
Now playing
01:32
Watch this production car break world speed record
Peter Valdes-Dapena/CNN
Now playing
01:01
This is Volkswagen's first electric SUV
Ferrari
Now playing
01:39
Ride along in the latest Ferrari convertible
Nissan Z concept car.
Nissan
Nissan Z concept car.
Now playing
00:54
Nissan gives a glimpse of its first Z car in more than a decade
(CNN Business) —  

Hyundai does not intend to be left behind in the high-stakes race to build mass-market electric and self-driving cars.

South Korea’s largest car company said Tuesday that it plans to invest 41 trillion won ($35 billion) into “future mobility technology” by 2025.

That massive pledge puts it on par with some of the industry’s top players. Volkswagen (VLKAF) is spending €30 billion ($34 billion) over the next five years to make an electric or hybrid version of every vehicle in its lineup.

Hyundai (HYMTF) said Tuesday it plans to release 23 kinds of electric vehicles by 2025. That would make up roughly half of its new lineup.

The automaker has a powerful partner in its efforts to transform its business. The announcement was backed by a pledge from South Korea’s government to spend 2.2 trillion won ($1.9 billion) on innovative auto technology.

“Our goal is to become the number one country for future car competitiveness by 2030,” President Moon Jae-in said Tuesday, speaking at a Hyundai research center.

South Korea will “be the first in the world to commercialize autonomous driving,” and a third of the cars on the country’s roads in the next decade should be electric or hydrogen-powered, he added.

The race to get fully autonomous cars on the roads is underway globally, and carmakers are under pressure to either get on board or risk getting left behind.

Japan’s SoftBank (SFTBF) has invested billions in partnerships with Toyota (TM) and GM (GM) to help develop driverless cars. Ford (F) and Baidu (BIDU) have teamed up to develop self-driving cars in China. And Volkswagen (VLKAF) started testing electric cars fitted with autonomous technology on a section of Hamburg’s streets.

But the effort is also expensive, eating into carmakers’ profits at a time when auto sales are dwindling globally.

— Sophie Jeong contributed reporting.