Hyundai Motor started producing the all-electric Genesis GV70 Luxury SUV in the USA. The assembly of electric vehicles in America at the Alabama plant is started in response to the Inflation Reduction Act (IRA) of the US. As per this Act, no subsidies are allowed for imported EVs.
Hyundai & Genesis
Hyundai Motor Company is well known as Hyundai. It is a South Korean automotive manufacturer. It has headquarters in Seoul, South Korea. Whereas Genesis is a part of the Hyundai Motor Company. However, Genesis brand made its own luxury cars to show a new kind of luxury driving experience. Genesis had its first all-electric release, the Genesis GV60.
The South Korean carmaker has started assembling the Genesis GV70 SUV in its Alabama plant. The core reason is to receive government subsidies as per IRA. These subsidies are available for EV purchases by local customers. The Genesis GV70 is the first all-electric model produced in the Alabama plant.
Inflation Reduction Act
The Inflation Reduction Act (IRA) of 2022 is a landmark USA federal law. The IRA aims to reduce inflation by reducing the deficit, lowering drug prices, and most importantly investing in domestic energy production while supporting clean energy.
The IRA provides up to $7,500 in tax credits to purchasers of EVs. The EVs must be assembled only in North America to receive this credit. Hyundai Motor and its affiliate Kia may lose the market in the USA if they produce EVs in some other country for export to the US.
It is good to share that Hyundai Motor has started the construction of its dedicated EV manufacturing plant in the world’s most promising automobile market, the USA.
In May 2022, Hyundai Motor Group shared the news that it will invest $5.54 billion to build an EV and its battery manufacturing facility in Georgia, USA. It is part of its electrification push. The group also plans to commence construction on the “300,000-unit-a-year” EV and battery production factory in Georgia. Here the production may begin in the year 2025.
Hyundai Motor aims to roll out 17 EV models by 2030. This will include six Genesis models. Kia also targets to release 14 EVs by 2027. Kia and Hyundai aim to sell 3.23 million EVs, which will include 840,000 units in the USA, in the year 2030.