In response to the US Inflation Reduction Act (IRA), which prohibits subsidies for imported EVs, Hyundai Motor announced that it has stared production of an electric vehicle (EV) in the United States.
According to Yonhap, a company official stated that the South Korean automaker began assembling the Genesis GV70 SUV in its Alabama plant on February 21 (local time) in order to receive government subsidies for EV purchases by local customers. The GV70 is Hyundai Motor’s first all-electric model produced in the Alabama plant under the Genesis brand.
There are concerns that Hyundai Motor and its smaller affiliate Kia could lose ground in the US market as they manufacture electric vehicles at domestic plants for export to the US under the IRA, which was signed into law in August by US President Joe Biden. The IRA provides buyers of electric vehicles assembled only in North America with tax credits of up to $7,500.
Before Hyundai Motor Group starts building its own dedicated EV plant in the world’s most important automobile market, EV production in Alabama begins. As part of its push toward electrification, Hyundai Motor Group announced in May of last year that it would invest $5.54 billion in Georgia to construct a manufacturing facility for electric vehicles and car batteries.
The company intends to begin production on the 300,000-unit-per-year electric vehicle and battery plant in Georgia in the first half of 2025. By 2030, Hyundai Motor will introduce 17 electric vehicle models, including six Genesis models. By 2027, Kia will introduce 14 electric vehicle models.
In 2030, Hyundai and Kia intend to account for 12% of the global EV market by selling 3.23 million electric vehicles, including 840,000 in the United States. By 2030, the government of the United States wants electric vehicles to account for half of all vehicles sold in the country.
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