Subsidy woes push Hyundai to start domestic production of electric cars in the US
Hyundai Motor has recently announced that it has commenced the electric vehicle production in the US in response to the US Inflation Reduction Act (IRA). This has been done since there will be no more subsidies for imported EVs in the US.
The company has started assembling the Genesis GV70 SUV in its Alabama plant earlier this week in a bid to receive government subsidies for EV purchases by local customers, a company official said, reports Yonhap news agency. The Genesis GV70 SUV is the first fully electric vehicle to be manufactured by the company and under the independent Genesis brand in the Alabama plant.
In August, the IRA signed into law by the US President Joe Biden, provides up to $7,500 in tax credits for electric vehicle customers when purchasing EVs produced only in North America. This has sparked concerns that Hyundai and its sister brand Kia may lose EV customers in the US market, these brands produce electric cars at the domestic plants in S.Korea and export it to the market in US.
In a bid to push forward its EV plans, the company in May 2022 announced that it will invest $5.54 billion to build an EV and car battery manufacturing plant in Georgia. The company plans to commence construction of the EV and battery plant in Georgia by the first half of 2023. This plant will be capable of churning out 300,000 units of EVs per year and will start production in the first half of 2025.
Hyundai Motor plans to roll out 17 EV models by 2030, including six Genesis models, with Kia scheduled to release 14 EVs by 2027.
Hyundai and Kia aim to sell 3.23 million EVs, including 840,000 units in the US, in 2030 to account for 12% of the global EV market.