Hyundai Motor is gearing up to begin the production of its first extended-range electric vehicle, the GV70 EREV, prototype next month. The model, poised for mass production in the United States starting in late 2026, aims to respond to shifting market dynamics and policy changes in North America according to ETNews report.
Introducing the Genesis GV70 EREV for North America
The flagship EREV model for Hyundai will be the Genesis GV70 EREV, a medium-sized sports utility vehicle (SUV) tailored for the North American market. Hyundai will finalize the specifications of this innovative model next month, with a prototype vehicle ready for rigorous testing shortly after.
Production of the GV70 EREV will commence in late 2026 at one of Hyundai’s U.S.-based facilities, with a targeted release in 2027. Alongside the GV70, Hyundai plans to extend EREV technology to other popular models, including the Santa Fe, starting with D-segment SUVs that are highly sought after in the North American market.
Local Production: A Strategic Move for the U.S. Market
Hyundai’s decision to produce the GV70 EREV locally reflects its strategic response to potential shifts in U.S. policy. The second administration of Donald Trump has signaled possible modifications to the Inflation Reduction Act (IRA), which could repeal or reduce EV-related tax incentives. By producing vehicles domestically, Hyundai positions itself to continue offering competitive pricing through tax credits, even amidst regulatory changes.
The annual production target for the GV70 and Santa Fe EREV models is 80,000 units, with all units manufactured locally. Hyundai is considering its Alabama Plant (HMMA), which currently produces the GV70 electric vehicle (BEV), or the newly established Hyundai Motor Group Metaplant America (HMGMA) in Georgia for this venture.
What Sets EREV Apart?
EREVs offer a unique combination of internal combustion engine (ICE) and EV capabilities. Unlike plug-in hybrids (PHEVs), EREVs rely on their engine solely to generate electricity for battery charging, while the vehicle itself runs entirely on electric power. This innovative setup enhances price competitiveness and range, making EREVs an attractive alternative to full-electric vehicles and PHEVs.
Hyundai’s EREV design reduces costs and boosts efficiency through key innovations:
- Battery Optimization: A 30% reduction in battery capacity, lowering costs while maintaining performance.
- Streamlined Powertrain: Reducing motor count from three to two enhances system efficiency.
- Impressive Range: EREVs will achieve over 900 kilometers (approximately 559 miles) on a full charge.
Global Expansion Plans for EREV
Hyundai also plans to introduce EREV technology to the Chinese market, leveraging a C-segment platform for semi-medium vehicles. The annual sales target for the Chinese market is 30,000 units. Depending on market demand and EV adoption trends, Hyundai may further expand EREV availability to other international markets.
