“We are looking for a suitable site and closely examining business conditions,” a Hyundai executive said.
Hyundai second US plant, which will be located in the neighborhood of Hyundai’s Alabama plant in Montgomery (as well as they’re looking a few others), will likely to launch full-scale operations from 2017.
The second US factory is likely to produce SUVs as the leisure vehicle is in great demand. Some 885,000 SUVs were sold in the US in the first two months of the year, a 15 percent increase on-year.
Key factors behind Hyundai Motor’s latest decision include the brisk sales of SUVs in the US-market. Hyundai Motor America has had difficulty in meeting the increasing SUV demand in the United States due to limited production capacity of its existing assembly plant there.
With the new factory, Hyundai’s global production capacity will reach 9.2 million vehicles in 2018. Hyundai Motor decided to establish its second US plant and planned to launch the construction within this year.