Munoz: "Tucson Hybrid and Santa Fe EREV to Be Produced in Alabama, U.S."

$500 Million Investment in Alabama Plant

Hyundai Motor Company will invest $500 million (KRW 676.7 billion) to produce the Tucson Hybrid model and the Santa Fe Extended Range Electric Vehicle (EREV) at its Alabama plant in the United States. This is part of a strategy to shift production volumes from Korea to the U.S. to counter American tariffs.

Jose Munoz, President of Hyundai Motor Company, attended the '2026 Automotive News Congress' held in Detroit, U.S., on the 29th (local time) and announced, "We plan to produce the Tucson Hybrid at the Alabama plant, and afterwards, we plan to bring the Santa Fe as well."

Hyun Dae-Cha President Jose Munoz is explaining the mid- to long-term business strategy at the '2026 CEO Investor Day' held on August 26 at the Conrad Seoul Hotel in Yeouido-dong, Seoul. Hyundai Motor Company

Currently, all Tucson Hybrid vehicles are produced at the Ulsan plant in Korea and exported to the U.S., while the Alabama plant has only produced the internal combustion engine version of the Tucson. The Santa Fe EREV is scheduled to be sold in the U.S. market starting from the first half of next year.

President Munoz added that with this new investment in the Alabama plant, the engines and EREV powertrains for these vehicles will also be produced locally.

As a result, Hyundai Motor Company expects to be able to avoid a significant portion of the tariffs imposed by the U.S. government on imported automobiles. The Tucson is a best-selling model, with 158,523 units sold in the U.S. from January to August this year, representing a 7.3% increase compared to the same period last year.

In addition, Hyundai Motor Company's hybrid vehicle sales in the United States are rapidly increasing. Last month, hybrid vehicle sales rose by 33% year-on-year, accounting for 29% of total U.S. sales, marking an all-time high.

This investment is regarded as part of Hyundai Motor Company's previously announced $26 billion (approximately KRW 35 trillion) U.S. investment plan through 2028. The plan includes expanding vehicle production capacity, as well as building a steel mill and establishing new robot factories.

'The All New Tucson'. Hyundai Motor Company

Furthermore, President Munoz expressed confidence in a body-on-frame pickup truck currently under development with a target release date before 2030. He emphasized, "There have been remarkable improvements in terms of quality, and we are now ready for our next challenge," adding, "We are ready to compete with other companies."

President Munoz also stated that localization has always been part of Hyundai's long-term U.S. strategy, and that consistency and flexibility are the two key factors for success. He said, "We do not change policies just because there is a change in administration. Investments require a much longer-term strategy," adding that Hyundai will further strengthen its U.S. engineering capabilities to focus on developing and improving products for the local market, as well as expand its network of partners within the United States.

This content was produced with the assistance of AI translation services.