Hyundai Motor Company, which owns the Hyundai, Kia, and Genesis brands, announced this year that it would fund 10.5 trillion won ($8.5 billion at the current exchange rate) in expanding its electrified range and building its first-ever EV factory in the United States.
The Korean company stated that it would spend roughly $5.5 billion on its new electric vehicle production plant in the state of Georgia, which will begin construction in the initial quarter of this year, leaving $3 billion useable for development and research of its current and future EVs across its brands.
Favorable foreign-exchange rates and higher sales of value-added cars led the growth for 2022
Seo Gang-Hyun, Executive Vice Presisdent of Hyundai stated on an earnings call in an Automotive News article
Hyundai is eligible for federal tax credits
Hyundai Motor Co. currently produces several EVs marketed under its brands, such as the Hyundai Ioniq 5, Kia EV6, and Genesis GV60. Still, it also creates many internal combustion-engined models, some of which are assembled at its Alabama plant.
Hyundai’s EVs will be qualified for the federal tax credits instituted by the Inflation Reduction Act (IRA), thanks to a new US factory dedicated to manufacturing electric vehicles and strategic partnerships with local battery suppliers.
IRA should increase the rate of adoption of its zero-emission vehicles even further. Currently, none of Hyundai’s EVs qualify for the $7,500 tax credit; nevertheless, the company will begin a leasing program permitted under the most recent iteration of the IRA.
73,000 EVs in 2023 for the US
In 2023, the Korean automaker plans to sell 73,000 electric vehicles in the United States, a 150 percent increase over last year, and 330,000 electric vehicles worldwide, a 54 percent increase over 2022.
Hyundai has 12 manufacturing plants worldwide and is the third largest automaker by capacity, trailing only Toyota and Volkswagen. In 2022, the Korean conglomerate sold nearly 7 million vehicles worldwide and saw its operating profit more than double in the previous quarter.
