Hyundai Motor Group is reportedly preparing to expand production capacity at its electric vehicle plant in Georgia, aiming to raise annual output from 300,000 to 500,000 units in response to potential U.S. tariffs on imported vehicles, the Korea Times reported.
Industry observers say Hyundai has been bracing for tariff measures since Donald Trump’s re-election and seeks to increase the share of vehicles built in the United States.
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The Hyundai Motor Group Metaplant America (HMGMA) in Georgia has been assembling the Ioniq 5 since October 2024, with production of the larger Ioniq 9 set to begin soon. The plant will also manufacture EVs for Hyundai’s sister brands, Kia and Genesis, using the E-GMP electric platform.
Further signs of Hyundai’s shift toward U.S.-based production emerged last week when reports indicated that SK Battery America, the U.S. subsidiary of SK On, would allocate nine of its twelve production lines to supplying batteries for Hyundai and Kia EVs starting in March. Additionally, Hyundai plans to expand its Alabama and Georgia factories, which currently produce 356,100 and 340,000 vehicles annually, though specific expansion targets remain unclear.
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Hyundai and Kia sold about 1.7 million vehicles in the U.S. last year, with only 40% produced domestically. The remainder, imported from South Korea, could face tariffs, potentially affecting not just Hyundai but also General Motors, which relies on its GM Korea unit to supply a significant share of U.S.-bound vehicles.
South Korean suppliers, including Hyundai Mobis, are also considering expanding their U.S. operations. However, some industry representatives remain cautious, citing the high costs and long-term planning required for relocating production facilities.