Despite the competition pulling back, Hyundai is racing full speed ahead as it looks to close the gap with Tesla in the US electric vehicle market. Hyundai Motor Group CEO Chang Jae-hoon confirmed EVs are “the top priority” in the US as construction on its massive $7.59 billion Metaplant wraps up in Georgia.
After kicking off construction on its first EV assembly and battery plant in October 2022, the facility is almost complete.
Although several US automakers, including Ford and GM, recently pulled back, Hyundai’s CEO is confident in the Korean automaker’s big bet on EVs.
“Even though the demand for electric vehicles is temporarily fluctuating more than expected, we believe our direction toward electric vehicles is correct,” Chang said to reports in Seoul Monday.
“For now, electric vehicles are the top priority,” Hyundai’s leader added while at an event organized by Georgia Governor Briant Kemp. The comments come as construction on the Hyundai Motor Group Metaplant America (HMGMA) is expected to be complete in Q4 2024.
“Georgia is not only a key area for our company but also the region where the most Korean companies have expanded, making it significantly important in terms of investment scale,” Chang explained.
Although Hyundai Motor has invested $7.59 billion, with its suppliers, the company has attracted over $12.6 billion in investments in the state. It will also create about 50,000 new jobs.
Hyundai is doubling down on EVs in the US
Chang’s comments reflect the same attitude Hyundai’s North American CEO, Randy Parker, had during a recent interview with Electrek.
Parker said Hyundai is “humble and hungry” to separate the brand from the competition (read the full interview here). Hyundai Motor, including Kia, is the second-biggest EV brand in the US.
“Demand for our vehicles, especially EVs, remains high,” Parker said. Hyundai’s top-selling IONIQ 5 set a new monthly sales record in May, with 4,449 units sold. Hyundai’s IONIQ EV brand sales are up 42% YOY as of May.
January | February | March | April | May | 2024 YTD Total | % Chg YTD | |
| Hyundai IONIQ 5 sales | 1,465 | 1,993 | 3,361 | 3,702 | 4,449 | 14,973 | +43% |
The EV production line at Hyundai’s Metaplant is expected to be ready in October. Hyundai’s IONIQ 5 will be the first to roll off the assembly line.
Once assembly begins, Hyundai expects EVs built at the facility to qualify for the $7,500 federal tax credit, giving the automaker even more momentum.
Although the battery unit will come online about a year later, it will be sourced from Hyundai’s Hungary plant. Hyundai, like many automakers, is passing the EV tax credit on to those leasing, drastically reducing prices.
Hyundai already has six of the top ten most affordable and fuel-efficient EVs in the US this year, but the company isn’t planning to slow down.
2024 Hyundai IONIQ 5 trim | Starting Price (excluding destination fee) | Price after potential $7,500 EV tax credit (excluding destination fee) | Range (EPA est miles) |
| SE Standard Range | $41,800 | $34,300 | 220 |
| SE | $45,850 | $38,350 | RWD: 303 AWD: 260 |
| SEL | $47,400 | $39,900 | RWD: 303 AWD: 260 |
| Limited | $53,500 | $46,000 | RWD: 303 AWD: 260 |
| D100 | $59,400 | $51,900 | 260 |
Starting at $41,800, Hyundai’s IONIQ 5 is already one of the cheapest EV options in the US, alongside the IONIQ 6 ($37,500) and the new Kona Electric ($32,675).
They are also some of the fastest charging (10% to 80% in 18 minutes) and long-range models (up to 361 miles EPA-est range) on the market.
However, with an added $7,500 cash offer, Hyundai EV leases start at just $189 per month. It’s no wonder Hyundai is racing past rivals.
Electrek’s Take
Hyundai continues surging ahead in the US as rivals are putting off EV investments. The automaker has already proven it’s a real competitor as the US electric vehicle market continues growing.
With access to the $7,500 tax credit, Hyundai looks to strengthen its position and close the gap with Tesla.
Top comment by Grant
Hyundai continues to make quality EVs with range at a competitive price. They will grow market share in the US, and I'm glad to see more on the road every day.
The early commitment with its dedicated IONIQ brand and E-GMP platform is paying off as Hyundai looks to take the next step. Hyundai is also expected to reveal its first three-row electric SUV, the IONIQ 9, in the US soon (Check out this video of it testing in the US).
With sales of Kia’s first three-row electric SUV, the EV9, off to a hot start in the US, Hyundai is expected to see similar results.
If you’re in the market for a new electric vehicle, Hyundai is offering some of the lowest prices yet with massive savings opportunities. You can use our links below to find deals on Hyundai’s EVs at a dealer near you.
Source: The Korea Times
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