Hyundai Expands U.S. Production Capacity in Georgia

Hyundai plans to increase production capacity at its Georgia plant, aiming for 700,000-800,000 units by 2028, as part of a $26 billion investment in the U.S.

SAN FRANCISCO – Hyundai Motor is poised to expand its U.S. production significantly at its new vehicle assembly plant in Georgia, as announced by CEO José Muñoz during an interview with CNBC on Thursday.

The company aims to increase the planned production capacity of its Hyundai Motor Group Metaplant America from 500,000 units to between 700,000 and 800,000 units by 2028. “For us, the USA is the most important market in the world besides Korea, which is our headquarters,” Muñoz stated, following the unveiling of the flagship Genesis GV90 SUV.

This newly announced capacity increase is part of Hyundai’s broader strategy to invest $26 billion in the U.S. by 2028, with intentions to launch a diverse range of new products. The company has set a goal to manufacture at least 80% of the vehicles it sells in the U.S. domestically, a significant increase from about 40% in 2024.

The anticipated expansion could establish the Georgia plant as the largest vehicle assembly operation in the U.S., surpassing current facilities operated by competitors like Tesla and Toyota Motor.

Besides the Georgia facility, Hyundai is also exploring additional investments for increased capacity dedicated to body-on-frame vehicles such as trucks and SUVs. However, specific details regarding these plans remain undisclosed. “We are always, always assessing the opportunities that we have in the market,” Muñoz remarked.

Muñoz highlighted how tariffs imposed by former President Donald Trump, including a 15% tax on imports from South Korea, have influenced the acceleration of Hyundai’s U.S. production strategies. “Tariffs are helping accelerate our localization plan. That’s very, very simple,” he asserted, noting that the company had already initiated plans before the tariffs were announced.

Initially revealed in 2022, the Georgia plant has seen an upward revision of its plans, with a total investment of $7.6 billion aimed at producing hybrid and all-electric vehicles for Hyundai, Genesis, and Kia, its corporate sibling. Currently operational models at the Metaplant include the all-electric Hyundai Ioniq 5 and Ioniq 9, as well as the Kia Sportage hybrid.

Muñoz, who made history as the first non-Korean CEO of Hyundai when he assumed the position last year, confirmed that the plans for the Georgia facility include a variety of vehicle productions and the hiring of thousands. The current plan for the 500,000 units anticipates employing more than 8,500 personnel at the Georgia site, along with another 6,900 at offsite suppliers.

Hyundai has experienced significant growth in U.S. sales during this decade, even prior to the facility becoming operational. According to company reports and Mobility Global data, sales for the brand and its parent company have surged nearly 50%.’