The Hyundai Motor Group is looking to keep its stand in the newest era of electric vehicles after becoming the third-largest automaker in the world last year. The automakers set a new strategy as many of their models become ineligible for the Inflation Reduction Act's standards.
(Photo : David Hecker/Getty Images)
CUXHAVEN, GERMANY - MARCH 07: KIA cars stand at Cuxhaven port prior to loading onto ferries for transport to the United Kingdom on March 7, 2019 in Cuxhaven, Germany. Several automakers are using Cuxhaven port, with its direct ferry line to the UK, to transport cars to the UK due to uncertainty ahead of the March 29 Brexit deadline.
Expanding in Mexico
Hyundai is looking for ways to maintain its stand by being North America's single largest market by ensuring its electric vehicles will qualify for the tax credit to secure its market. Electrek reported that after the Inflation Reduction Act set its standards for EVs to qualify for the $7,500 tax credit, many models of Kia and Hyundai have become ineligible.
New Nuevo Leon Mexico Governor Samuel Garcia revealed that the company has been planning to invest in the state for billion dollars, in order to expand its plant and produce vehicles in the country. This was described by the governor as good news as once again, Nuevo Leon received an investment from a private company.
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On his Twitter account, Garcia retweeted "#Kia announces billion dollar investment to install another plant in #NuevoLeon where it will produce two new electric models in conjunction with Hyundai," which obviously confirms the news about the automaker's expansion.
According to the released photos of the governor, it could be an expansion of Kia's existing 400,000-vehicle capacity plant in the area, which started its operations seven years ago. Pulse reported that the Mexican plant is Kia's fourth overseas facility, following those in China, Europe, and the United States.
Additionally, his post featured two electric vehicles that could be the new flagship EV9. However, Kia already confirmed that the SUV will be built in West Point, Georgia, and will start next year as the company's first assembled electric vehicle in the United States.
Maintaining its Spot
Garcia is hoping that this new planned investment will open future possibilities that will make Nuevo Leon a state that produces the most famous electric vehicle models, including vehicles from Tesla, KIA, and the Navistar electric truck. The facility is expected to become operational by 2025.
The Hyundai Motor Group which includes Kia and Genesis is aiming to maintain its spot as the third-largest automaker in the globe by the end of the decade. There are several new releases from the brands under the Hyundai umbrella, which include ONIQ 6, Kona Electic, Kia EV9, and Genesis GV70.
A Kia official stated via The Korean Herald, "We are considering transferring some of the production lines for EVs. The move is part of our response to the Inflation Reduction Act in the US. But the exact schedule has not yet been decided."
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