Hyundai to invest billions in US to advance EVs
Hyundai Motor and Kia Corporation will soon start manufacturing electric vehicles in United States. Hyundai Motor has announced its plans to invest to set up production facilities and other logistics to make that happen in a few years time.
Jose Munoz, Global Chief Operating Officer at Hyundai Motor and President and CEO of Hyundai Motor North America, said, “I am excited to make this announcement on behalf of the Hyundai Motor Group. This investment demonstrates our deep commitment to the US market, our dealers and customers. Hyundai will lead the future of mobility in the United States and around the world. Our efforts are proof positive that Hyundai will continue to pursue excellence in our current and future product line-up.”
Hyundai Motor announced plans to invest $7.4 billion in the US by 2025 to produce electric vehicles and further its investments in smart mobility solutions.
Sean Yoon, President and CEO of Kia North America, said, “One key element of Kia’s transformation is transitioning from internal combustion engine to electrification. With our strategic investment in the United States to produce EV models, we are making huge strides to lead the EV market but also increase our contribution to the economies where we do business.”
Recently, US President Joe Biden emphasised the need to push toward electric mobility. The US government aims to replace around 650,000 vehicles in its fleets with electric vehicles made in the country. Hyundai decision to invest in electric vehicle manufacturing in US will give it an opportunity to sell some of its own to the government too.
“We are reviewing options including expanding on our production facility after we’ve taken a closer look at US market conditions and US government’s new EV policy,” Hyundai said in a statement, according to news agency Reuters.
Hyundai already has a functional vehicle manufacturing facility in Alabama, while Kia’s vehicles are manufactured at a plant in Georgia. Besides taking advantage of the new EV policy in US, Hyundai and Kia will also aims to benefit from a rising number of electric vehicles on the road as the market keeps growing in US.