Hyundai Motor may speed up construction of EV factory in US

Hyundai is considering starting construction later this year in order to begin commercial production in the second half of 2024.
By : Reuters
| Updated on: 22 Aug 2022, 17:36 PM
File photo used for representational purpose. (REUTERS)
File photo used for representational purpose. (REUTERS)
File photo used for representational purpose. (REUTERS)
File photo used for representational purpose.

A new US law excluding electric vehicles assembled outside North America from tax credits could persuade South Korea's Hyundai Motor Co to bring forward the start-date for construction of an EV and battery plant in the United States to as early as this year, Yonhap news agency reported on Monday.

Hyundai Motor said in May that it would break ground on its new facility in Georgia in early 2023, with commercial production starting in the first half of 2025 with an annual capacity of 300,000 units. But the company is now considering starting construction later this year in order to begin commercial production in the second half of 2024, Yonhap reported, citing an unidentified auto industry source. Hyundai Motor was not immediately available for comment. US President Joe Biden signed into law on Aug. 16 a $430 billion bill, which ends tax credits for about 70% of the 72 EV models that were previously eligible.

Similar Cars

Find More Cars
Hyundai Creta (HT Auto photo)
Hyundai Creta
1497 cc | Petrol | Manual | 17 kmpl
₹10 - 17.87 Lakhs**Ex-showroom price
Hyundai Venue (HT Auto photo)
Hyundai Venue
1197 cc | Petrol | Manual | 17.52 kmpl
₹7.53 - 12.72 Lakh**Ex-showroom price
Hyundai I20 (HT Auto photo)
Hyundai I20
1197 cc | Petrol | Manual | 20.35 kmpl
₹6.8 - 11.43 Lakhs**Ex-showroom price
Hyundai Grand I10 Nios (HT Auto photo)
Hyundai Grand I10 Nios
1197 cc | Petrol | Manual | 21 kmpl
₹5.19 - 8.52 Lakhs**Ex-showroom price
Skoda Slavia (HT Auto photo)
Skoda Slavia
999 to 1498 cc | Petrol | Manual
₹10 - 15 Lakhs**Ex-showroom price
Toyota Belta (HT Auto photo)
UPCOMING
Toyota Belta
1462 cc | Petrol | Manual
₹10 Lakhs *Expected Price

(Also read | Hyundai Tucson, to buy or not: Five positives and negatives

As a result, EVs sold by Hyundai Motor, Kia Corp, Toyota and others are no longer eligible for the tax credits. South Korean Foreign Minister Park Jin expressed concerns over the new U.S. legislation during a call with US Secretary of State Antony Blinken last week, according to a foreign ministry official.

FOLLOW US:Stay Updated with latest content - Subscribe us on
FOLLOW US:Stay Updated with latest content - Subscribe us on

(Also read | Hyundai India expects semiconductor shortage to improve next year)

South Korea will review whether to file a complaint at the World Trade Organization over the U.S. Inflation Reduction Act, citing concern that the law could violate WTO rules and a bilateral free trade deal between South Korea and the United States, Industry Minister Lee Chang-yang told a parliamentary session. The country's Trade Minister Ahn Duk-geun plans to discuss the matter with US officials next week during his trip to Washington, Lee said on Monday.

 

First Published Date: 22 Aug 2022, 17:36 PM IST
Recommended For You
View All
NEXT ARTICLE BEGINS

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city
By clicking VIEW OFFERS you Agree to our Terms and Privacy Policy

Dear Name

Please verify your mobile number.

+91 | Choose city