Hyundai Motor Group is making significant strides in the US electric vehicle (EV) market, positioning itself as a major contender against industry leader Tesla. CEO Chang Jae-hoon recently reaffirmed that EVs are Hyundai’s “top priority” in the US, coinciding with the near completion of its $7.59 billion Metaplant in Georgia.
The construction of Hyundai’s first EV assembly and battery plant began in October 2022 and is set to be completed by Q4 2024. The Metaplant represents a pivotal development for Hyundai, with CEO Chang Jae-hoon underscoring its strategic importance during an event organized by Georgia Governor Brian Kemp.
“Even though the demand for electric vehicles is temporarily fluctuating more than expected, we believe our direction toward electric vehicles is correct,” Chang stated during an event organized by Georgia Governor Brian Kemp. He emphasized the strategic importance of Georgia not only for Hyundai but also for numerous other Korean companies.
The massive investment, including partnerships with suppliers, has attracted over $12.6 billion to the state and is expected to create approximately 50,000 new jobs, solidifying Hyundai’s commitment to the region and the EV market.
Despite recent pullbacks from other US automakers like Ford and GM, Hyundai remains undeterred. Chang emphasized, “Even though the demand for electric vehicles is temporarily fluctuating more than expected, we believe our direction toward electric vehicles is correct. For now, electric vehicles are the top priority.”
This sentiment echoes the perspective of Hyundai’s North American CEO, Randy Parker, who noted that Hyundai is “humble and hungry” to distinguish itself from competitors. Hyundai Motor, including its affiliate Kia, currently holds the position as the second-largest EV brand in the US.
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Demand for Hyundai’s EVs remains robust, with the IONIQ 5 leading the charge. In May, the IONIQ 5 set a new monthly sales record with 4,449 units sold, contributing to a 42% year-over-year increase in IONIQ brand sales as of May 2024. The following table highlights the monthly sales trajectory for the IONIQ 5 in 2024:
| Month | Sales |
|---|---|
| January | 1,465 |
| February | 1,993 |
| March | 3,361 |
| April | 3,702 |
| May | 4,449 |
| YTD Total | 14,973 |
| % Chg YTD | +43% |
The EV production line at Hyundai’s Metaplant is slated to be operational by October 2024, with the IONIQ 5 being the first model to roll off the assembly line. This new facility is expected to significantly bolster Hyundai’s market position by enabling its EVs to qualify for the $7,500 federal tax credit.
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Hyundai already boasts six of the top ten most affordable and fuel-efficient EVs in the US, with models like the IONIQ 5 starting at $41,800 and the IONIQ 6 at $37,500. The new Kona Electric, priced at $32,675, is also among the most affordable options. These models are recognized not only for their cost-effectiveness but also for their impressive charging speeds (10% to 80% in 18 minutes) and long-range capabilities (up to 361 miles EPA-estimated range).
Here are the starting prices and ranges for the 2024 Hyundai IONIQ 5:
| Trim | Starting Price (excluding destination fee) | Price after $7,500 Tax Credit | Range (EPA est miles) |
|---|---|---|---|
| SE Standard Range | $41,800 | $34,300 | 220 |
| SE | $45,850 | $38,350 | RWD: 303 / AWD: 260 |
| SEL | $47,400 | $39,900 | RWD: 303 / AWD: 260 |
| Limited | $53,500 | $46,000 | RWD: 303 / AWD: 260 |
| D100 | $59,400 | $51,900 | 260 |
Hyundai’s commitment to innovation and expansion continues with plans to introduce its first three-row electric SUV, the IONIQ 9, in the US soon. The success of Kia’s EV9, a three-row electric SUV, hints at promising prospects for Hyundai’s upcoming model.
Hyundai’s aggressive investment and strategic initiatives in the EV market underscore its determination to close the gap with Tesla and other competitors. As the US market for electric vehicles continues to grow, Hyundai’s blend of affordability, innovation, and strategic investment positions it well for a leading role in the industry.
