Hyundai Motor is considering a significant expansion of its production capacity at its Georgia assembly plant, with plans to increase output from 500,000 vehicles annually to between 700,000 and 800,000 units by 2028. CEO José Muñoz revealed this information in an interview with CNBC, although the company has emphasized that these plans are still under consideration and have not been finalized.
If Hyundai follows through with this expansion, the Georgia Metaplant would surpass competitors such as Tesla and Toyota Motor to become the top U.S. vehicle assembly plant in terms of capacity. Muñoz attributed the accelerated localization plans to President Donald Trump’s tariffs, including a 15% levy on imports from South Korea. He stated that the tariffs have helped speed up the company’s localization efforts, which were already in progress prior to the announcement of the tariffs.
The expansion project would be funded through Hyundai’s previously announced $26 billion U.S. investment commitment that extends until 2028. The company aims to increase its domestic production share to at least 80% of the vehicles sold in the U.S. market by 2030, compared to around 40% in 2024. Muñoz highlighted the need for additional capacity to achieve this goal.
The Georgia Metaplant, which was first announced in 2022 with a $7.6 billion investment, currently produces electric and hybrid vehicles for Hyundai, Genesis, and Kia brands. The facility employs over 8,500 people directly, with an additional 6,900 positions supported at nearby supplier facilities. In addition to the expansion in Georgia, Hyundai is also exploring additional investments for body-on-frame vehicles such as trucks and SUVs at a separate location.
Muñoz emphasized the importance of the U.S. market in Hyundai’s global strategy, noting that the country is second only to Korea, where the company is headquartered. Hyundai’s market share in the U.S. has increased from 8.4% in 2020 to 11.2% last year, according to data from Mobility Global cited by CNBC.
Overall, Hyundai’s potential expansion of its Georgia assembly plant demonstrates the company’s commitment to increasing its presence in the U.S. market and meeting the growing demand for its vehicles. As Hyundai continues to invest in localization and production capacity, it is poised to strengthen its position as a leading automotive manufacturer in the United States.
