Hyundai Motor Group builds on EV momentum

Hyundai Motor Group, parent of Hyundai, Genesis and Kia, continues to fill the role as the No. 2 electric vehicle maker in the U.S.

Through July, sales of EVs between all three brands accounted for 10 percent of the market, ahead of Ford (7.4 percent) and General Motors (6.3 percent), according to data from Motor Intelligence.

Despite slowing growth of EV sales, consumers are still responding to the stylish and tech-forward products offered across the three brands. Hyundai and Kia are also leaning heavily into leasing so they can pass down the $7,500 tax credit — none of their EVs are eligible for the purchase credit.

Kia's leasing rate for its EV lineup is between 60 and 70 percent, depending on the model, according to the company. Hyundai told Automotive News that its lease rate for EVs is 60 percent.

Hyundai Motor Group has invested heavily in developing EV technology, including building plants in the U.S. so it can localize its supply chain and meet the stringent requirements to qualify for the incentive.

The Metaplant EV and battery complex under construction in Bryan County, Ga., is expected to come online in October. The battery portion of the factory is part of a joint venture between the group and LG Energy Solution. It's expected to come online at the end of 2025.

The Metaplant will have annual capacity to build 300,000 EVs, with the ability to dial up to 500,000 depending on demand. Six electric models across all three brands will come from the plant. The first will be the Ioniq 5 compact crossover, Hyundai's the top-selling EV.

A second joint venture with SK On in Bartow County, Ga., is targeted to open in the second half of 2025. It will supply batteries for EVs built at Hyundai's plant in Montgomery, Ala., the assembly site of the Genesis Electrified GV70, and Kia Georgia in West Point, which was just upgraded to build the EV9. U.S. production of the EV9 is underway, and delivery of those vehicles will start in October. It will be the first EV from the group to qualify for the federal purchase incentive under the more stringent rules that came into effect this year.

Hyundai also found itself well positioned for a surprise consumer pivot to hybrids — both conventional gasoline-electric and plug-in — as the crucial rollout of the charging infrastructure continues to lag the pace at which automakers are producing EVs. The legacy technology also is more affordable and there are more choices in the marketplace.

Hyundai's hybrid and plug-in hybrid sales are up 25 percent through July. There are five models in the lineup that offer multiple powertrains: the Kona, Santa Fe and Tucson crossovers, and the Elantra and Sonata sedans. Following a surge in sales, Hyundai Motor North America CEO Jose Muñoz said the company plans to add hybrid models, including PHEVs, to the Metaplant roster.

Kia also offers three hybrids in its compact Niro subcompact, compact Sportage and midsize Sorento crossovers (the Sportage and Sorento also have PHEV options). Though sales have been down across the board — Kia hybrid sales slid 21 percent through July — the hybrid and PHEV mix is strong. In the same period, the HEV and PHEV accounted for 25 percent of Sportage sales, 15 percent of Sorento sales and 53 percent of Niro sales, according to Motor Intelligence.

Genesis continues to enhance its brand with 56 new standalone retail locations that feature high-end accommodations and sleek glass architecture. It's also adding performance models, both gasoline and electric, to its portfolio, including a sporty GV80 Coupe, now on sale, and a performance variant of the electric GV60 subcompact crossover that will be released under the "Magma" subbrand is expected late next year.

A halo vehicle based on the open-roof, four-door concept Genesis revealed at the 2022 Los Angeles Auto Show also is expected to debut in 2026 as a low-volume ultra-luxe convertible in 2026 and will serve as a premium centerpiece in Genesis showrooms.