In light of a new U.S. rule barring tax advantages for EVs made outside of North America, industry sources said Monday that Hyundai Motor Co. (NASDAQ:HYMTF) is considering speeding up the construction of its dedicated electric vehicle (EV) plant in the United States.
As per a source with firsthand knowledge of the situation, Hyundai (NASDAQ:HYMTF) will begin construction on a US$5.54 billion EV and auto battery plant in Georgia later. The company aspires to begin production in the second half of 2024. Originally, the South Korean automaker intended to begin building the 300,000-unit-per-year U.S. EV facility in January 2023 and commence production in the first half of 2025.
The decision to reconsider comes as U.S. President Joe Biden recently signed the Inflation Reduction Act, which calls for increasing tax benefits for EV customers, but only for EVs made in North America. It is anticipated to be a setback for Hyundai and Kia Corp., which produce all of their EVs domestically.
Kia (NASDAQ:KIMTF) is expected to produce 14 EVs by 2027, and Hyundai Motor expects to introduce 17 EV models by 2030, including six Genesis models. In order to account for 12% of the worldwide EV market, Hyundai and Kia, the fifth-largest automaker in the world, plan to sell 3.23 million EVs in 2030, including 840,000 in the United States.
On August 16, the U.S. President signed a $430 billion package into law. The legislation also ends tax benefits for nearly 70% of the 72 previously qualifying EV cars. During a conversation with American Secretary of State Antony Blinken last week, South Korean Foreign Minister Park Jin voiced worries about the new U.S. law, according to a representative of the foreign ministry.
According to Industry Minister Lee Chang-yang, South Korea will consider whether to lodge a complaint with the World Trade Organization regarding the U.S. Inflation Reduction Act due to concerns that the law might be in violation of WTO regulations and a bilateral free trade agreement between South Korea and the United States. Ahn Duk-geun, the nation’s trade minister, intends to tackle the issue with American authorities during his visit to Washington next week, Lee said on Monday.
About Hyundai
Hyundai Motor Company is a multinational South Korean automobile manufacturing company with its headquarters located in Seoul in South Korea. In 1967, Hyundai Motor Company was established as a business. At this time, the company has ownership of 33.88% of Kia Corporation. In addition, it has complete ownership of two car brands, which include its subsidiary for luxury automobiles, Genesis Motor, and a sub-brand for electric vehicles called Ioniq. The Hyundai Motor Group is comprised of these three distinct brands comprised together.
Ulsan, which is located in South Korea, is home to the largest integrated automobile manufacturing facility in the world, which belongs to Hyundai and has the capacity to produce 1.6 million vehicles per year.
Roughly 75,000 people are employed by the company across the world. Vehicles manufactured by Hyundai are distributed throughout 193 countries via 5,000 dealerships and showrooms.
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Author Jowi Kwasu 
