South Korea’s largest automaker, Hyundai Motor, is bolstering EV production despite rumors that the market is slowing. The automaker revealed plans to suspend operations at its main factory in South Korea as it shifts its focus toward EVs.
On Monday, Hyundai said it will temporarily suspend activities at its Asan plant in South Korea.
According to Hyundai’s regulatory filing, the suspension will take place between Dec 31, 2023 – Feb 13, 2024. The company will resume operations the following day.
Despite headlines claiming EV demand is slowing, Hyundai is charging ahead. Senior leaders told Reutersahead of the LA Auto Show earlier this month that they are still seeing strong demand for their electric vehicles.
“I am still very bullish on the battery electrics,” explained Jose Munoz, Hyundai’s global president, highlighting that EV sales doubled year-over-year.
Hyundai raced past Ford and GM in the third quarter, placing second in the US EV market. Registration data from Automotive News shows Hyundai and sister company Kia claimed 7.5% of the market.
Although Tesla still dominates the market (57.4%), Hyundai’s IONIQ 5 and Kia’s EV6 set new October sales records last month.
Hyundai’s growth comes despite not qualifying for the IRA’s EV tax credit (only through leasing). The company has plans to change this.
“Based on what I see, I need more. If I had more capacity today, I could sell more cars.” Hyundai’s global leader said. After beginning construction on its first EV and battery plant in the US last October, Hyundai said 99.9% of the foundation work is complete.
Munoz said the company is “pushing as much as we possibly can to get it ready by October next year.”
Once mass production begins, Hyundai plans to build 300,000 EVs at the $5.5 billion mega EV plant.
On the one-year anniversary of breaking ground on its first EV assembly and battery plant in the US, Hyundai announced significant progress at the site.
Hyundai began construction on its $5.5 billion electric vehicle and battery plant in Bryan County, Georgia, on October 25, 2022. Exactly a year later, Hyundai says 99.9% of all the foundation work is already complete.
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Once up and running, Hyundai’s first US EV and battery plant will employ 8,500 employees between HMGMA, its battery JV with LG, and on-site suppliers. Altogether, 14,476 will be employed, including off-site suppliers.
Hyundai initially planned to begin construction in early 2023 but got to work after the Inflation Reduction Act was passed in August.
With a potential $7,500 EV tax credit for its electric vehicles on the line, Hyundai is rushing to start electric vehicle and battery production as quickly as possible.
Hyundai global president and COO Jose Munoz told reporters in Atlanta following a partnership with Georgia Tech last month (via AP News) that the company decided to “double down” on starting production.