Hyundai Motor Co. will temporarily cease operations at its Asan, South Korea, facility to strengthen its electric vehicle (EV) market position.
Reuters reported that, according to a regulatory filing by the South Korean manufacturer on Monday, the pause from December 31, 2023, to February 13, 2024, would be used to build a cutting-edge electric vehicle production plant.
Hyundai continues to devote itself to electric transportation despite recent indications of EV demand slowing. At the LA Auto Show last month, senior executives told Reuters that EV sales are tripling year-over-year.
Hyundai overcame Ford and GM to rank second in the US EV market in the third quarter, demonstrating its rapid expansion. Hyundai and Kia outperformed industry titans with 7.5% of the market, according to Automotive News registration statistics.
Hyundai Excels in The EV Industry
While Tesla continues to dominate with a 57.4% market share, Hyundai's IONIQ 5 and Kia's EV6 achieved new sales records in October, contributing to the company's rising influence in the EV landscape.
Despite not qualifying for the Internal Revenue Service's (IRS) EV tax credit (currently available only through leasing), Hyundai has ambitious plans to increase its market share.
The company is on track to complete its first EV and battery plant in the US, with 99.9% of the foundation work already completed.
The $5.5 billion mega-EV plant is set to commence mass production in early 2026, aiming to manufacture 300,000 EVs annually, according to Electrek.
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Hyundai's global president, Jose Munoz, expressed optimism about the company's trajectory and emphasized the need for increased capacity to meet growing demand.
Munoz revealed that the company is striving to have the US-based plant operational by October next year, indicating Hyundai's proactive approach to expansion in the electric vehicle market.
Hyundai Executive Chair Awarded as Leader of the Year
In another development, Hyundai Motor Group Executive Chair Chung Euisun has received recognition for her dedication to EVs after receiving the Automotive News Industry Leader of the Year award.
The prestigious accolade acknowledges Chung's pivotal role in advancing the automotive and tech industries, specifically highlighting Hyundai Motor Group's contributions to electric vehicles and hydrogen power, along with its achievements in luxury cars and purpose-built vehicles.
"It is an honor to be named the 2023 All-Stars Industry Leader. This award is in recognition of the entire Hyundai Motor Group family and partners all around the world who have worked so hard and devoted themselves to making sure that we achieve our vision of smart, sustainable mobility and progress for humanity," Chung said, as quoted by The Korea Times.
TechTimes previously reported that Hyundai's significant investment in EVs is notable compared to rival automotive manufacturers.
Recently, Ford announced reductions in its electric pickup division, while General Motors postponed the expansion of electric vehicle production, citing supply chain issues among other constraints.
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