Seoul 24 August : Hyundai Motor said on Wednesday that its chairman Chung Euisun was visiting the US amid increasing concerns over the new law that exempts electric vehicles (EVs) constructed outside the US from tax incentives.The South Korean carmaker didn’t provide any information about Chung’s US schedule, as reported by the Yonhap news agency.
Chung was scheduled to meet with US executives and officials from the US government to discuss the company’s situation with regard to the recently adopted Inflation Reduction Act (IRA) and request that they “help to improve an unjust portion” of the IRA, auto industry officials stated.
This week, US President Joe Biden signed the $430 billion bill that allows up to $7500 of tax-free subsidies only for EVs built in the US.
The law will bring an injury to Hyundai Motor and Kia, the two major partners of the group, who produce the majority of their EVs in the US.
It also puts the two Korean automobile manufacturers in an advantage in the world’s biggest automotive market, where local rivals like Tesla and General Motors build EVs and receive state-funded subsidies in full.
The passing of the IRA comes a few months after Hyundai Motor announced plans to invest $5.54 billion to begin construction of a 300,000-unit electric vehicle manufacturing facility in Georgia in the month of January in 2023.It will then commence production in the first half of 2025.
As a result, Hyundai Motor, the principal partner of the company, is looking at increasing the speed of construction of its own electric vehicle (EV) plant in the U.S., industry sources who are familiar with the subject told.
Hyundai Motor will consider starting construction of its $5.54 billion electric vehicle and battery for cars in Georgia later in the year and with the intention of beginning production in the second quarter of 2024.
It was originally planned to begin construction of the U.S.Electric Vehicle plant in January 2023 and start production in the first half of 2025.
Hyundai Motor plans to roll out 17 EV models by 2030, which includes six Genesis models, with Kia scheduled to launch 14 EVs in 2027.
Hyundai and Kia together make up the fifth largest carmaker in the world, intend to market 3.23 million EVs which includes 840,000 in the US, in 2030 to make up 12 percent of the world’s EV market.Their share was 5 percent last year.
Hyundai announced that it would begin manufacturing an all-electric version of the Genesis GV70 SUV at its Alabama plant in the latter part of this year, however the Hyundai IONIQ 5 and Kia EV6 will be produced in their local facilities to export.
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