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[Alpha Biz= Kim Jisun] Hyundai WIA has decided to proceed with its plan to manufacture hybrid (HEV) vehicle engines at its plant in Mexico.


According to the automobile industry on Tuesday, Hyundai WIA will begin production of 1.6L Gamma engines at its Monterrey plant in Mexico early next year. These engines will be supplied to Hyundai and Kia’s HEV models. The company had previously announced this plan during a conference call, stating that it would complete local investment for production by the end of this year and start mass production in early 2026.


Hyundai and Kia have been in discussions with Hyundai WIA regarding hybrid engine production since last year. However, concerns arose in the industry that the plan might be halted due to former U.S. President Donald Trump's escalating tariff pressures. Some speculated that in-house hybrid engine production at Hyundai and Kia’s U.S. plants could be a more efficient alternative.


Nevertheless, Hyundai and Kia have decided to stick to their original plan and manufacture North American hybrid engines at Hyundai WIA’s Mexico plant. Reports indicate that, despite tariff considerations, contracted production through Hyundai WIA remains the more efficient option. 

 

 

Additionally, Hyundai and Kia’s current in-house production capacity is insufficient to meet the growing demand for hybrid vehicles in the U.S., leading the companies to push for production facility expansion.

 

 

 

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