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Photo = Hyundai Motor Group |
[Alpha Biz= Kim Jisun] Hyundai Motor and Kia are set to expand electric vehicle (EV) production in the US and Europe to counteract Donald Trump’s tariff policies and the European Union’s environmental regulations.
Hyundai’s EV Expansion in Turkey
According to the auto industry on the 5th, Hyundai has begun preparations to establish a mixed EV production system at its Izmit plant in Turkey. Currently producing internal combustion engine (ICE) models like the i20, the plant will begin manufacturing EVs next year. To accommodate EV production, Hyundai is expected to discontinue local production of the i10, a compact hatchback designed for the European market.
The Turkey-manufactured EVs will be exported to Europe, aligning with EU CO₂ emission regulations and a revival in European EV demand. While the EU has granted a three-year grace period for stricter emission standards, automakers must ramp up EV sales to comply with future regulations.
Kia’s Slovakia Plant Becomes an EV Hub
Kia is also transforming its Slovakia plant into an EV production base. From the first half of this year, the plant will begin producing the EV4 hatchback, followed by the EV2 later this year.
The European EV market is rebounding, with January sales increasing 37% year-over-year. The revival is largely due to countries like Germany reinstating EV subsidies. Kia aims to sell half of its global EV4 production target (160,000 units) in Europe, while Hyundai is also considering producing small EVs in Turkey to target the European market.
EV Production Expansion in the US Amid Tariff Concerns
In the US, Hyundai and Kia are reviewing plans to expand EV production in response to potential tariffs from a re-elected Trump administration. At Hyundai’s Meta Plant America (HMGMA) in Georgia, test production of the Ioniq 5 began last year, and full-scale operations have now started. If Trump enforces tariffs on Korean-made cars, Hyundai plans to increase HMGMA’s production capacity from 300,000 to 500,000 units annually.
Meanwhile, Kia may revise its production strategy in Mexico. With Trump imposing a 25% tariff on Canadian and Mexican imports as of March 4, Kia’s Mexican plant operations could face significant changes.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
