Hyundai Motor has initiated the development of a facility in South Korea, valued at 2 trillion won ($1.5 billion), that will be specifically equipped for the manufacturing of electric vehicles (EVs). The eventous groundbreaking ceremony occurred on Sunday in Ulsan, the precise site where Hyundai initially established its assembly facility in 1968.
The firm says its new factory will be complete by 2025 and can build 200,000 electric vehicles per year. They will begin full-scale manufacturing in early 2026. Hyundai will start building Genesis electric SUVs at this factory.
Going Against Rivals' Trend
The Executive Chair of Hyundai Motor Group, Euisun Chung, was optimistic about Ulsan's ability to evolve into an innovative mobility city during the electrification era, beginning with the construction of a dedicated EV facility.
Chung remarked, as quoted in a CNN report, "Just as Ulsan's status as an automotive metropolis was elevated in the past due to the aspiration to manufacture the finest automobiles, I have faith that the city will emerge as a vanguard of innovative mobility in the era of electrification, commencing with a specialized EV plant."
When compared to rival companies that are reducing the production of electric vehicles, Hyundai's significant investment in EVs is notable. Recently, Ford announced reductions in its electric pickup division, while General Motors postponed the expansion of electric vehicle production, citing supply chain issues among other constraints.
Sector analysts observe a decline in EV demand as unsold inventory on dealer lots persists for extended periods of time in comparison to gas-powered vehicles.
In addition to substantial investments in South Korea, Hyundai Motor Group has allocated $5.5 billion to Georgia for the establishment of battery facilities and the advancement of electric vehicle technology.
Hyundai Hits Second Largest Market Share in US EV Industry
Automotive News data indicates that Hyundai Motor Group maintains the second-largest market share in the United States electric vehicle industry, notwithstanding apprehensions regarding Washington's protectionism policy.
The Korea Times reported that Hyundai Motor Co. and Kia had 7.5% market share in the first nine months of this year, while Tesla had 57.4%. Chevrolet and Ford Motor followed with 5.9% and 5.5% market shares, respectively. In this period, 852,904 new EVs were registered in the US, an increase of 61% over the previous year.
In contrast to some rivals who are reducing EV production in response to perceived declining demand, Hyundai Motor remains committed to its EV deployment plans. Ford Electric F-150 Lightning pickup truck assembly plant operations were temporarily halted, whereas General Motors postponed production of the Chevrolet Silverado and GMC Sierra electric pickup vehicles.
Meanwhile, Tesla has delayed construction of a factory in Mexico, and last month, GM and Honda dissolved a $5 billion joint venture aimed at developing more affordable electric vehicles, according to Asia Business Outlook.
