Hyundai Motor begins Genesis GV70 EV production in US

Hyundai Motor Co. has commenced production of the Genesis GV70 electric vehicle in the United States. This marks the first locally produced vehicle that qualifies for the US Inflation Reduction Act (IRA), which offers subsidies of up to $7,500 per year for electric vehicles assembled in North America.

Hyundai Motor held a ceremony to celebrate the launch of the Electrified GV70 at the Alabama plant in the US on Tuesday, with prices starting at $65,850. The vehicle qualifies for subsidies of up to $7,500 as its price is below the US Treasury Department's electric sport utility vehicle (SUV) subsidy cap of $80,000.

Despite the IRA's implementation last year, major EV models such as the IONIQ 5, which is produced and exported from South Korea, do not currently qualify for subsidies.

Nevertheless, the company revealed that pre-orders and sales of the IONIQ 5 and other models remain strong. Hyundai aims to sell 36,000 IONIQ 5 units in the US this year, a 60% increase from last year.

Hyundai plans to build an electric vehicle-dedicated plant in Georgia with an annual capacity of 300,000 units, with completion scheduled for early 2025. However, the company aims to expedite the schedule to take advantage of the subsidies.

Write to Il-Gue Kim at black0419@hankyung.com