"Turning On the Big Electrification Change"…Hyundai Motor Produces Electric Vehicles in the US

Manufacturing Santa Fe Hybrid Models
at Alabama Plant in the US This Second Half
Dedicated Electric Vehicle Plant Also Under Discussion
Jung Named 'Prophet of the Year' by Newsweek
Recognized as Leader in the Auto Industry for the Next 30 Years

Hyundai Motor Company has decided to increase its factories in the United States to directly produce eco-friendly vehicles such as electric cars locally. This move aims to respond to the rapidly growing electric vehicle market in the U.S. by establishing a local production and supply system. This is the first concrete step since last year’s decision to invest 9 trillion won (7.4 billion dollars) by 2025 to expand electric vehicle production facilities in the U.S. Hyundai Motor Group Chairman Chung Euisun, who is accelerating the electrification transition, was named “Visionary of the Year” by the U.S. magazine Newsweek.

Accelerated U.S. Electric Vehicle Adoption... Hyundai Expands Local Factories

Hyundai Motor Manufacturing Alabama (HMMA) announced on the 12th (local time) that it will produce the Santa Fe Hybrid in the second half of this year, meaning Hyundai will start producing electric vehicles in the U.S. The Santa Fe Hybrid combines a gasoline engine and an electric motor. Currently, all units are manufactured at the Ulsan plant in Korea and sold domestically and internationally. Local production in the U.S. is scheduled to begin in October. Additionally, the Hyundai Alabama plant revealed that the electrified Genesis GV70 model will also be produced starting in December, with plans to begin local sales early next year.

The Hyundai plant in Alabama has an annual production capacity of about 370,000 units. Currently, it only produces internal combustion engine vehicles such as compact sedans and SUVs. Hyundai plans to invest 300 million dollars to expand production facilities and establish a local production system for electric vehicles. Among Hyundai’s overseas plants, the number capable of producing electric vehicles has increased to five, including China, India, the Czech Republic, Indonesia, and now the U.S.

Last November, U.S. President Joe Biden was seen driving himself after visiting GM's electric vehicle factory, Factory Zero.

Hyundai Motor Group is also expected to soon finalize plans to build a dedicated electric vehicle factory in the U.S. Discussions are reportedly underway with local state governments, focusing on the Sun Belt eastern region, including Georgia where Kia’s plant is located, as well as Tennessee and South Carolina.

Since the Biden administration took office, the U.S. electric vehicle market has been rapidly expanding due to the increased adoption of electric vehicles and accelerated electrification by major automakers. While most major manufacturers such as Toyota and General Motors (GM) saw their first-quarter sales decline by double digits this year, Tesla’s U.S. sales increased by more than 40%. With the recent start of operations at its new Texas factory, production and sales are expected to increase significantly.

Rivian began delivering electric pickup trucks at the end of last year, and Ford has also started delivering new electric vehicles to customers this year. As competition among companies to gain early market leadership intensifies, Hyundai’s need to respond quickly through localization strategies has become even more critical.

Hyundai Motor Chairman Chung Euisun is delivering his acceptance speech after being selected as Newsweek's Prophet of the Year on the 12th (local time).

"Chung Euisun to Influence the Auto Industry for the Next 30 Years"

Chairman Chung Euisun was named this year’s visionary in Newsweek’s “Disruptive Innovators in the Global Automotive Industry” because of Hyundai’s electrification strategy and his redefinition of mobility, or means of transportation.

The magazine previously announced 50 great disruptive innovators at the end of last year and this time selected leaders in six categories limited to the automotive industry. The “Visionary of the Year” award is given to industry leaders expected to have a significant impact on the future of the automotive business for more than 30 years. Chairman Chung was also featured on the cover of the special issue.

Chairman Chung is going beyond securing core competencies in electrification and autonomous driving by boldly expanding into new fields such as Urban Air Mobility (UAM) and hydrogen energy. He said, “Efforts to turn imagination into reality ultimately aim at humanity, and the evolution of mobility that Hyundai Motor Group will achieve will provide humanity with more valuable time and space.”

At this event, which awarded six categories, Hyundai Motor Group’s Architecture Development Center and Electrification Development Division received the “R&D Team of the Year” and “Powertrain Evolution of the Year” awards, respectively. Hyundai Motor Group accounted for half of all awardees.

Elon Musk, Tesla CEO, unveiling the Model S at the Fremont factory in 2011

This content was produced with the assistance of AI translation services.