Hyundai eyes U.S. production increase at Georgia plant, CEO tells CNBC

SAN FRANCISCO — Hyundai Motor is considering plans to further expand its U.S. production at a new multibillion-dollar vehicle assembly plant in Georgia, CEO José Muñoz told CNBC on Thursday.

Muñoz said the South Korean automaker could increase the planned production capacity of its Hyundai Motor Group Metaplant America from 500,000 units to between 700,000 and 800,000 units by 2028.

“For us, the USA is the most important market in the world besides Korea, which is our headquarters,” Muñoz said Thursday during an exclusive interview after the reveal of the company’s flagship Genesis GV90 SUV.

The potential capacity increase would be part of Hyundai’s plan to invest $26 billion in the U.S. through 2028, he said. The company aims to launch dozens of new products and has a goal to produce at least 80% of the vehicles it sells in the U.S. domestically by the end of this decade, up from roughly 40% in 2024.

“For that purpose, we need to add more capacity,” he said Thursday. “We want to have all this up and running by 2028. That is our intention.”

Following publication, Hyundai said the plans are under consideration but not yet confirmed.

At 700,000 to 800,000 vehicles annually, the plant would be the largest vehicle assembly operation by capacity in the U.S., overtaking other facilities from companies such as Tesla and Toyota Motor.

Hyundai is also evaluating additional investment for capacity outside of the Georgia Metaplant for body-on-frame vehicles such as trucks and SUVs, but Muñoz declined to disclose further details.

“We are always, always assessing the opportunities that we have in the market,” he said.

Muñoz said President Donald Trump’s tariffs, including 15% on imports from South Korea, have played a role in the company accelerating its U.S. production plans.

“Tariffs are helping accelerate our localization plan. That’s very, very simple,” he said. “The good thing is that we had already started before tariffs were announced. So in a way it’s helping us to accelerate.”

Hyundai initially announced the plant in 2022 but it has continued to increase its plans for the $7.6 billion facility that’s designated to produce hybrid and all-electric vehicles for Hyundai, Genesis and Kia.

The Metaplant currently produces the all-electric Hyundai Ioniq 5 and Ioniq 9 as well as the Kia Sportage hybrid.

Muñoz, who became the first non-Korean CEO of the automaker when he took the role last year, said the company’s plans include producing a variety of different vehicles at the plant and employing thousands. The current plan for 500,000 units included more than 8,500 employees on the Georgia megasite and an additional 6,900 people at off-site suppliers.

Hyundai has experienced massive U.S. sales growth this decade, even before the Metaplant came online. Sales for the brand and the parent company, which includes Kia and Genesis, are up nearly 50%, according to company reports and Mobility Global.

Hyundai has increased its market share in the U.S. from 8.4% in 2020 to 11.2% last year, according to Mobility Global, formerly known as S&P Global Mobility.