Hyundai to Boost U.S. Production at New Georgia Plant

Hyundai Motor is set to significantly expand its U.S. manufacturing operations at its new, multi-billion dollar assembly plant in Georgia. According to CEO José Muñoz, the South Korean automaker intends to increase the projected production capacity of its Hyundai Motor Group Metaplant America from the initial 500,000 units to between 700,000 and 800,000 units annually by the year 2028.

"For us, the USA is the most important market in the world besides Korea, which is our headquarters," Muñoz stated during a recent interview following the unveiling of the company's flagship Genesis GV90 SUV. This previously undisclosed increase in capacity is a key component of Hyundai's broader plan to invest $26 billion in the U.S. through 2028. The company aims to introduce numerous new models and achieve a target of producing at least 80% of the vehicles it sells in the U.S. domestically, a substantial leap from the approximately 40% produced in 2024.

If realized, these plans would position the Georgia plant as the largest vehicle assembly operation in the U.S. by capacity, surpassing facilities operated by companies like Tesla and Toyota Motor.

Furthermore, Hyundai is exploring additional investments for producing body-on-frame vehicles, such as trucks and SUVs, at locations outside of the Georgia Metaplant. Muñoz, however, refrained from providing further specifics on these potential projects, emphasizing the company's continuous assessment of market opportunities.

Muñoz indicated that trade policies, including tariffs, have influenced Hyundai's decision to accelerate its U.S. production plans. He noted that tariffs are "helping accelerate our localization plan" and acknowledged that the company had already initiated its expansion strategies before tariffs were announced, with the tariffs serving to further expedite these efforts.

The Georgia plant, a $7.6 billion facility announced in 2022, is designed to manufacture hybrid and all-electric vehicles for Hyundai, Genesis, and its corporate affiliate Kia. Currently, the Metaplant is producing the all-electric Hyundai Ioniq 5 and Ioniq 9, as well as the Kia Sportage hybrid. The expanded production plans are expected to create thousands of jobs, with the original 500,000-unit capacity plan alone projected to employ over 8,500 people at the megasite and an additional 6,900 at offsite suppliers.

Hyundai has experienced significant sales growth in the U.S. market in recent years, with combined sales for Hyundai, Kia, and Genesis rising by nearly 50% according to company reports. The brand's market share in the U.S. has also grown, increasing from 8.4% in 2020 to 11.2% last year.

Hyundai Motor is poised to further enhance its U.S. production capabilities at a new, multi-billion dollar vehicle assembly plant in Georgia. Company CEO José Muñoz informed CNBC that the South Korean automaker anticipates increasing the planned production capacity of its Hyundai Motor Group Metaplant America from 500,000 units to between 700,000 and 800,000 units annually by 2028.

"For us, the USA is the most important market in the world besides Korea, which is our headquarters," Muñoz stated during an exclusive interview following the debut of the company's flagship Genesis GV90 SUV. This upward revision in capacity, which had not been previously disclosed, is part of Hyundai's broader commitment to invest $26 billion in the U.S. through 2028. The company intends to launch numerous new products and aims to locally produce at least 80% of the vehicles it sells in the U.S., a significant increase from the approximately 40% in 2024.

These plans would likely establish the Georgia facility as the largest vehicle assembly operation by capacity in the U.S., potentially surpassing current operations by companies such as Tesla and Toyota Motor.

Additionally, Hyundai is evaluating further investments for the production of body-on-frame vehicles, including trucks and SUVs, at facilities separate from the Georgia Metaplant. Muñoz, however, opted not to provide more details on these prospective projects, stating, "We are always, always assessing the opportunities that we have in the market."

Muñoz indicated that the impact of President Donald Trump's tariffs, including a 15% levy on imports from South Korea, has played a role in accelerating the company's U.S. production plans. "Tariffs are helping accelerate our localization plan. That's very, very simple," he remarked. "The good thing is that we had already started before tariffs were announced. So in a way, it's helping us to accelerate."

Hyundai first announced the plant in 2022, and its plans for the $7.6 billion facility, designated for the production of hybrid and all-electric vehicles for Hyundai, Genesis, and its sister company Kia, have continued to grow. The Metaplant is currently manufacturing the all-electric Hyundai Ioniq 5 and Ioniq 9, along with the Kia Sportage hybrid. Muñoz, who became the automaker's first non-Korean CEO last year, added that the company's plans involve producing a diverse range of vehicles at the plant and employing thousands of people. The original plan for 500,000 units included over 8,500 employees at the Georgia megasite and an additional 6,900 at offsite suppliers.

Hyundai has experienced substantial sales growth in the U.S. this decade, even prior to the Metaplant's commencement of operations. Sales for the brand and its parent company, which encompasses Kia and Genesis, have increased by nearly 50%, according to company reports and Mobility Global. Hyundai has expanded its market share in the U.S. from 8.4% in 2020 to 11.2% last year, as reported by Mobility Global, formerly known as S&P Global Mobility.