HMG to turn out all green models of Hyundai, Kia, Genesis from new EV plant in Georgia

[Photo by MK DB]

South Korea’s Hyundai Motor Group would roll out all green models of Hyundai Motor, Kia, and luxury marque Genesis from its first electric vehicle-dedicated plant in the United States possibly from 2024 to better respond to the Inflation Reduction Act restricting tax grants to EVs assembled in the U.S.

The Korean auto mogul in May had entered an agreement with the State of Georgia to complete an EV and battery facility with an annual capacity of 300,000 units at an investment of $5.54 billion in Bryan Country, near the Port of Savannah – the largest container terminal in the U.S. – in the first half of 2025. It had not specified then the models to be turned out from the new plant.

Ground-breaking was supposed to take place early 2023, but the IRA has hastened the construction timetable.

The facility in coastal Georgia will become the group’s first EV-dedicated plant for all three auto brands – Hyundai Motor, Kia and Genesis. Hyundai Motor operates its plant in Montgomery, Alabama, and Kia has its plant in West Point, Georgia.

Government and Hyundai Motor management are going all-out to earn tax credit for the group models until the plant is ready for operation.

The American Automobile Association (AAA), which plays a major role in drawing up detailed IRA guidelines, earlier promised that it will work closely with Korean companies to ensure equal treatment of Korean EVs in the U.S. market.

The new IRA has speeded up Hyundai Motor Group’s electrification schedule in the U.S. It has decided to start assembling its Santa Fe Hybrid at the Alabama plant in October and Genesis GV70 Electrified in December.

Hyundai Motor"s Ioniq 5 and Kia EV6

Currently, Hyundai Motor’s Ioniq 5 and Kona EV, Genesis’ GV60 and Kia’s EV6 and Niro EV are entirely produced in Korea.

Hyundai Motor Group commands the second-largest share in the U.S. EV market after Tesla. Its vehicle prices are lower than those of Tesla vehicles but higher than those of China-made cars.

“If its EV sales are hurt by the IRA before the completion of the new plant, Hyundai Motor group could lose its market influence in the U.S.,” warned Lee Hang-gu, an analyst at the Korea Automotive Technology Institute.

Hyundai Motor shares closed 4.20 percent lower at 182,500 won in Seoul trading on Monday, and Kia 3.61 percent down at 74,800 won.

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