Hyundai is preparing to launch its first electric vehicle (EV) manufacturing facility in the US this year with the goal of obtaining the lucrative $7,500 EV tax credit. Hyundai’s proactive approach in the quickly changing EV market is demonstrated by this action. In October 2022, work on the $7.6 billion electric vehicle megaplant in Georgia began. Significant progress was made in a short amount of time. First scheduled for early 2023, the construction schedule was accelerated when the Inflation Reduction Act was passed, demonstrating the importance of the tax credit.
Second Only to Tesla, Accelerating Production for Tax Credit Qualification
Jose Munoz, CEO of Hyundai Motor America, emphasized the importance of accelerating production to qualify for the tax credit. Despite some initial delays, Hyundai has surged ahead, becoming the second-largest EV seller in the US, trailing only Tesla. Leveraging a leasing loophole, Hyundai, along with Kia and Genesis, captured approximately 8% of the US passenger EV market in the previous year, showcasing its commitment to electric mobility.
Hyundai’s success can be attributed to its lineup of dedicated EV models, such as the IONIQ 5 and upcoming releases like the IONIQ 6 and Kia’s EV9. Munoz reassured stakeholders that EVs manufactured at the new plant will indeed qualify for the tax credit, instilling confidence in the brand’s future prospects. The plant’s inauguration is anticipated as early as October 2024, three months ahead of schedule, with battery production set to commence in January.
From IONIQ 7 SUV to Tesla Compatibility, Leading the Charge in EV Innovation
Once operational, the EV plant is poised to churn out 300,000 EVs annually, with the potential for expansion to 500,000 units. The facility will assemble six electric models across Hyundai, Kia, and Genesis, including the highly anticipated IONIQ 7 SUV. Hyundai’s commitment to electric mobility remains steadfast, even as competitors like Ford and GM encounter setbacks in their EV initiatives.
To address concerns from dealers, Hyundai plans to enhance compatibility with Tesla’s network, further cementing its position in the EV market. With enticing incentives and competitive pricing, Hyundai’s electric models, such as the IONIQ 6 and Kona Electric, offer compelling alternatives to traditional combustion vehicles. As consumer interest in EVs continues to soar, Hyundai is poised to capitalize on the burgeoning market demand with its innovative and affordable electric lineup.