Hyundai Global COO, Jose Munoz, has announced that the new Hyundai plant located in Georgia will start production in 2024, with a goal of producing 500,000 units annually.
Hyundai’s new production location in Georgia was already anticipated to be a behemoth. The South Korean manufacturer’s $5.5 billion facility had a planned production capacity of 300,000 units annually and would complement Hyundai’s pre-existing U.S. production location in Alabama starting in 2025. But now, according to comments given to Reuters, the company has moved forward the production start date to 2024, and they have increased their claimed capacity to 500,000 units annually.
The scale of Hyundai’s new plant is more apparent when compared to its U.S. sales data. In their Q3 sales report, the company announced that they had sold just over 500,000 vehicles year-to-date. Meaning that if this new facility plan is to be believed, it is nearly capable of supplying all of the U.S. demand for Hyundai vehicles in a year. This is to say nothing of Hyundai’s existing plant in Alabama, which already produces a large number of Hyundai Santa Fe, Santa Cruz, Tuscon, and Elantra units for the states. This plant has that capacity “if the demand is there,” says the COO.
The company also plans to move production forward, starting as soon as Q3 2024, and full production beginning in January of the following year.
Hyundai has good reason to increase its production goals and move forward with the new facility’s start date. With the U.S.’ new electric vehicle incentives, Hyundai was left out in the cold because their EV offerings aren’t assembled in the U.S, making them ineligible for federal incentives. But with this new facility, the company can easily supply all of the U.S. and possibly begin to export electric vehicles as the demand for new EVs grows.
Few other details are known about the upcoming facility. However, the company COO added in his comments today that the new facility will likely produce five or six different models of vehicles. It remains unclear what number of those will be fully electric, though many anticipate those vehicles to take center stage as Hyundai battles for ever-increasing EV market share.
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