CEO José Muñoz says Hyundai could raise production at its Georgia plant to 700,000-800,000 vehicles by 2028 as the company expands in the US.
Hyundai is considering a major expansion of its US manufacturing footprint as it looks to produce more vehicles locally and reduce its exposure to imports.
CEO José Muñoz said the company is evaluating plans to increase production capacity at its Hyundai Motor Group Metaplant America in Georgia from 500,000 to between 700,000 and 800,000 vehicles annually by 2028.
The expansion would form part of Hyundai’s planned $26 billion investment in the United States through 2028.
The higher capacity has not yet been confirmed.
Hyundai wants to build more cars in America.
The Georgia Metaplant is a $7.6 billion facility designed to manufacture hybrid and fully electric vehicles for Hyundai, Genesis and Kia.
Hyundai currently produces models including the Ioniq 5 and Ioniq 9 at the facility.
Muñoz said the US is Hyundai’s most important market outside South Korea, making greater local production a strategic priority.
The company plans to introduce several new products in the US and wants at least 80% of the vehicles it sells in the country to be produced domestically by the end of the decade.
That would represent a significant increase from roughly 40% in 2024.
Tariffs are accelerating localisation
US trade policy is also pushing Hyundai toward faster localisation.
Muñoz said the 15% tariff on imports from South Korea has accelerated the company’s plans to increase American production.
Hyundai had already begun expanding its US manufacturing presence before the tariffs were introduced, but the additional import costs have strengthened the case for producing vehicles closer to American customers.
The company is also evaluating additional production capacity outside the Georgia Metaplant for body-on-frame vehicles, including trucks and SUVs.
A much larger Georgia factory
At its currently planned 500,000-unit capacity, the Georgia site is expected to employ more than 8,500 workers, with another 6,900 people employed by off-site suppliers.
Raising annual capacity to 700,000-800,000 vehicles would make the facility one of the largest vehicle assembly operations in the United States.
The expansion would also give Hyundai greater flexibility across different powertrains as consumer demand shifts between electric, hybrid and conventional vehicles.
Hyundai’s US market share is growing.
The investment comes after significant growth for Hyundai in the US.
The company’s US sales have increased by nearly 50% over the past six years, while its market share rose from 8.4% in 2020 to 11.2% in 2025.
That growth gives Hyundai a stronger reason to increase domestic production capacity.
The strategy also benefits its wider automotive group. Hyundai, Kia and Genesis can share manufacturing capabilities, technology and supply chains, helping spread the cost of investment across multiple vehicle brands.
$26 billion bet on the US
Hyundai’s proposed expansion is ultimately about more than building another factory.
The company is trying to reshape its US manufacturing footprint around a market that has become increasingly important to its global business.
Higher local production could help Hyundai respond faster to US demand, reduce import exposure and support its transition toward hybrid and electric vehicles.
For Muñoz, the target is clear: build more of what Hyundai sells in America, in America.
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Photo: José Muñoz, CEO of Hyundai
Source: Business Connect
