Hyundai Motor Group stated last year its aim to invest billions in the US by 2025.
Hyundai announced its plans to build a new electric vehicle assembly plant in southern Georgia. According to a Bloomberg report, sources familiar with the plans shared the EV factory is part of the $7.4 billion investment plans that Hyundai has lined up for the United States. Hyundai Motor Group, the owner of both the Hyundai and Kia brands, stated last year its aim to invest billions in the US by 2025, which intends to cover EV plants, hydrogen refuelling stations as well as flying taxis.
Sales of Hyundai have increased in the United States since the automaker revamped its product lineup to meet the growing demand for SUVs. Last year, it also set a US retail sales record in the first quarter after increasing deliveries by nearly 20 per cent in 2021. Hyundai also had shared previously that it will spend $300 million to expand its assembly factory in Montgomery, Alabama, to make a hybrid version of the Santa Fe crossover and an EV for its luxury Genesis brand, the GV70, later this year.
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Hyundai’s Alabama plant currently has an annual capacity to manufacture 3,90,000 vehicles. This plant of the company already produces models such as Sonata and Elantra sedans, Santa Fe SUV with an internal combustion engine along with Santa Cruz compact pickup truck.
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Hyundai’s announcement of building a new electric vehicle factory in Georgia comes at a time when US President Joe Biden has been pushing for more investments in electric vehicles and EV related suppliers. This new project is expected to create about 8,000 new jobs. Hyundai’s other brand Kia last month shared it was aiming to shift production to the United States, however, it doesn’t want a dedicated EV plant like the former’s. Hyundai has plans to introduce 17 EVs by 2030 that including six for its luxury Genesis brand while Kia aims to bring in 14 electric vehicles by 2027.
First Published Date: 13 May 2022, 09:18 AM IST