Hyundai Motor Group, alongside affiliate Kia, plans to utilize its existing investment in the United States to manufacture hybrid vehicles at its electric vehicle (EV) plant in Georgia. The automaker’s global Chief Operating Officer, Jose Munoz, announced this strategy at a business conference hosted by the Financial Times, stating, “I think we can handle (that) within the current investment more or less… It is already a lot.”
The South Korean automaker is set to invest $12.6 billion in new dedicated EV and battery manufacturing facilities in Georgia, marking its largest investment outside South Korea. Munoz mentioned that the decision to produce hybrids alongside electric vehicles at the Georgia plant signifies a pivotal moment for the company. He expressed the importance of diversifying their offerings, stating, “Now we are at this pivotal point where we can decide if we’re going to go full electric or if we should go for something else. My vote here is that we should go for something else in addition to electric.”
Hyundai’s move comes as automakers and suppliers are ramping up capacity to meet the growing consumer demand for gasoline-electric hybrid and plug-in hybrid vehicles in the U.S. market. In the first quarter, Hyundai experienced a 17% increase in sales of hybrid vehicles globally, indicating a rising interest in these more affordable alternatives to pure EVs.
Munoz also addressed the potential impact of the U.S. Inflation Reduction Act on the company’s plans, which requires vehicles to be assembled in North America to qualify for EV tax credits. He expressed confidence in Hyundai’s position in the U.S. EV market, noting that they were closing the sales gap with Tesla, the current leader in the segment. He stated, “In October later this year and (if) we qualify (for U.S. EV tax credits), then we are going to be able to fight a head to head in the same conditions as our competitors.”
