Hyundai CEO envisions ‘50-50′ split between EV, hybrid assembly in Georgia
NEW YORK — Hyundai Motor Co.’s chief executive said hybrid assembly will be incorporated into the company’s electric vehicle factory near Savannah as part of a wave of expedited investment planned for Georgia.
Hyundai CEO José Muñoz told The Atlanta Journal-Constitution during his company’s annual investor meeting in New York City that hybrids will start rolling off Georgia assembly lines next year. He projected hybrids could comprise half of the factory’s output by 2030, citing shaky American demand for EVs.
“You will see a good balance. I would say roughly 50-50 between hybrids and EVs,” Muñoz said. “Our strength is the flexibility and the ability to produce different types of vehicles in the same factory.”
The emphasis on hybrid incorporation is one piece of Hyundai’s $2.7 billion expansion to its Bryan County factory, which it calls the Metaplant. Muñoz laid out plans to hire 3,000 more workers, increase production to 500,000 units annually and eventually assemble 10 different EV and hybrid models in Georgia.
The wave of announcements comes on the heels of a Sept. 4 immigration raid at the campus’s battery factory, currently under construction, which triggered an international firestorm. Hyundai has said it remains committed to the project, though the raid has caused anger in Korea and will temporarily pause construction of the site amid discussions about visa issues.
Hyundai executives Thursday spent much of their two-hour investor presentation focusing on ramping up U.S. production, aiming to expand sales in North America.
The Metaplant was portrayed as the key cog in Hyundai’s American growth machine.
“This isn’t just growth. It is a strategic, sustainable expansion in the world’s most important automotive market (the U.S.),” Muñoz told a crowd of international investors at The Shed in Manhattan. “Among all regions, North America stands out as our largest and most strategically important.”
‘Things have changed’
When Hyundai announced its Georgia factory plans in 2022, entrenching EV production stateside seemed like the logical long-term play.
Plug-in vehicle pioneer Tesla had broken through to mainstream car buyers. EV sales were exponentially increasing. Most industry experts expected American EV sales to grow at a similar trajectory to Europe and Asia, which adopted the technology more quickly.
President Joe Biden amped up those expectations further by signing in 2022 the Inflation Reduction Act, which included a bevy of incentives and consumer tax credits to boost EV adoption.
“We were planning on the expected combination between the IRA but also the greenhouse gas regulations to increase the demand of battery EVs,” Muñoz said. “Well, then things have changed.”
Those changes are twofold: President Donald Trump’s reelection and lackluster EV demand from consumers.
Trump campaigned on repealing what he called the “EV mandate,” referring to the IRA’s clean energy incentives. Consumer tax credits worth up to $7,500 for new EV purchases will be revoked at the end of September, which Muñoz said will likely dampen plug-in sales.
Meanwhile, Americans remain hesitant to abandon the gas pump for electron propulsion.
EVs in August reached a record 9.9% of all new sales, according to data from Cox Automotive. It’s a nearly 18% increase from the same time last year, but that’s a much slower growth rate than automakers and analysts predicted years ago when Hyundai unveiled its Metaplant vision.
Those sales also include consumers rushing to take advantage of the tax credits before they sunset, said Stephanie Valdez-Streaty, director of operations management at Cox Automotive.
“These shifts signal a market on the verge of a change as government-backed sales incentives dry up at the end of September,” Valdez-Streaty wrote in a market analysis.
Cox Enterprises, owner of the AJC, also owns Cox Automotive.
Ramping up hybrids
Hyundai is trying to stay ahead of those market shifts, which Muñoz said means ramping up focus on hybrids.
Hybrids are seen as the best of both worlds for many car buyers. They feature battery propulsion for short distances and a gas-powered engine for extended range. Hybrid sales are growing at a faster pace than full EVs or conventional vehicles.
In July 2024, Hyundai laid the groundwork to incorporate hybrid production at the Metaplant by filing for permits to store gasoline on the 3,000-acre campus.
“We thought initially we would do 100% EVs,” Muñoz said of Metaplant production. “But now we see a much bigger opportunity on hybrids in the short-term.”
By 2030, Hyundai aims for 60% of its vehicle sales to have electrified powertrains, which includes fully electric vehicles and hybrids. Muñoz told investors that North America’s growth potential will be “driven primarily by hybrids.”
Muñoz declined to announce additional vehicle models that will be assembled in Georgia. So far, the only models built in Georgia are the plug-in IONIQ 9 three-row SUV and IONIQ 5 crossover, including a Waymo-powered autonomous version.
The Metaplant could also be used to assemble models by Kia and Genesis, brands owned by Hyundai. Kia operates Georgia’s other operational car assembly plant in West Point, which recently underwent an expansion to incorporate EV production.
Hyundai said by 2030 it aims to domestically produce more than 80% of its vehicles sold in the U.S. The company also wants to increase its domestic supply chain to 80% from 60% by the end of the decade.
Muñoz said those goals aren’t driven by Trump’s tariff crusade, which has shaken international trade. He said domestic production in the U.S. — and trying to rival Tesla’s hold on electrified buyers — is prudent business for a fast-growing automaker.
“My top three priorities are U, S and A,” Muñoz said.
About the Author
Zachary Hansen, a Georgia native, covers economic development and commercial real estate for the AJC. He's been with the newspaper since 2018 and enjoys diving into complex stories that affect people's lives.
