Hyundai and Kia have announced plans to expand their eco-friendly car production in their U.S. factories, shifting their strategy amid growing trade uncertainties. Previously, a significant proportion of electric and hybrid vehicle production was based in domestic factories. However, concerns over a renewed tariff war, reignited by former U.S. President Donald Trump, have prompted Hyundai and Kia to accelerate local production plans.
Hyundai Motor’s Expansion in Georgia
On March 4, industry sources confirmed that Hyundai Motor recently completed the trial production phase at its newly constructed Hyundai Group Metaplant America (HMGMA) in Georgia and has officially begun its main operations. The facility specializes in producing the Hyundai IONIQ 5, with shipments increasing from 1,006 units in December 2024 to 1,623 units in January 2025. The total shipments of the IONIQ 5 have reached 2,629 units in just two months, with production continuing to rise in February.
Hyundai is expected to ramp up production further, transitioning to full-scale mass production of the Ioniq 5 this month. Additionally, the large electric SUV, the Ioniq 9, is in its final production stages, with sales set to commence in the U.S. market this spring. Hyundai has committed to ensuring that all U.S. sales of the Ioniq 9 come from domestic production facilities.
HMGMA’s current annual production capacity stands at 300,000 units. However, in anticipation of potential tariff hikes, Hyundai Motor Group is exploring options to expand its production to 500,000 units per year. When combined with the production capabilities of Hyundai’s Montgomery factory in Alabama (360,000 units per year) and Kia’s West Point factory in Georgia (340,000 units per year), Hyundai Motor Group could potentially produce up to 1.2 million vehicles annually in the United States.
To meet these goals, Hyundai is actively expanding its workforce at HMGMA. While a large-scale recruitment effort was conducted before the factory’s completion last year, additional hiring efforts are underway to support increased production.
In addition to electric vehicles, HMGMA is also set to manufacture hybrid cars to meet rising consumer demand. Currently, 85% of the hybrid vehicles Hyundai sells in the U.S. are manufactured in South Korea, making localization a key priority.
Kia Expands EV Production in Georgia
Kia is also ramping up its U.S. production efforts. In January 2025, Kia’s West Point factory in Georgia shipped its first 103 units of the EV6, marking the beginning of local EV6 production. Originally planned for the fourth quarter of 2025, mass production was expedited due to the growing uncertainty surrounding tariffs.
The West Point factory, which already manufactures popular models like the Telluride, Sorento, and Sportage, has been producing the large electric SUV EV9 since last year. With the addition of the EV6, the factory now produces two electric vehicle models domestically. Furthermore, Hyundai’s Montgomery factory in Alabama has been producing the Genesis GV70 electrified model since 2023.
Hyundai and Kia’s Commitment to the U.S. Market
Hyundai Motor Group has been emphasizing its contributions to the U.S. economy through localization efforts. In a shareholder letter, Hyundai Motors’ foreign CEO Jose Muños highlighted the company’s strong collaboration with the U.S. government to showcase Hyundai’s large-scale investments, job creation, and economic impact.
Despite tariff concerns, Hyundai and Kia recorded strong sales in the U.S. market. In February 2025, the two brands collectively sold over 130,000 vehicles, marking the highest February sales performance in their history. This achievement extends their streak of record-breaking monthly sales in the U.S. for the fifth consecutive month.
With increasing investment in U.S. production, Hyundai and Kia are positioning themselves as major players in the American electric and hybrid vehicle market while mitigating risks associated with evolving trade policies.
