To America for Hyundai. The Korean automaker is expected to invest 10.5 trillion won ($8.5 billion) during the year 2023 to electrify more of its fleet with the construction of a new plant in the United States, according to a Jan. 26 filing. United.
Hyundai wants to sell more than 70,000 electric cars in the US in 2023
This new investment will be predominantly devout research and development of new electric vehicles (EV), as well as the construction of a new plant in Georgia. Last May, Hyundai announced it would spend $5.5 billion to build an assembly plant for electric cars and batteries. Construction is expected to start in the first quarter of 2023.
Currently, the Korean manufacturer produces several electric cars marketed under all its brands, such as the Hyundai Ioniq 5, the Kia EV6 and the Genesis GV60. However, it also sells many models of heat engines, some of which are assembled at its Alabama plant.
This new plant in Georgia is expected to accelerate the sale of the brand’s electric vehicles. In fact, they will be able to benefit from the federal tax credits introduced by the Inflation Reduction Act, which should further stimulate the adoption rate. At this time, none of Hyundai’s zero-emission models qualify for the $7,500 tax credit.
For 2023, the Korean manufacturer has two clear goals. He would like to achieve further growth in his turnover. In 2022, Hyundai increased it by 11.5%, especially after posting fourth-quarter earnings that beat analyst estimates. The company also increased its dividends to 3.8% for ordinary shareholders and 7.6% for preferred shareholders. A first in many years for the automaker, whose shares jumped 6.3% following the news.
Second goal: It wants to sell 73,000 EVs in the US, a 150% increase over last year. This objective also includes the vehicles produced by Kia and Genesis, the other two brands of the Hyundai group, which will also benefit from this investment program and the new plant. The company estimates that global sales volumes will reach 330,000, a 54% increase from 2022.
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