In a strategic shift to meet evolving consumer demand, Kia has announced it will begin producing hybrid vehicles at Hyundai Motor Group’s massive electric vehicle (EV) plant in Georgia by mid-2026. The move expands the plant’s original focus beyond fully electric models and signals Kia’s commitment to diversifying its U.S. manufacturing footprint.
Originally planned to manufacture all-electric cars, the Hyundai Motor Group Metaplant America (HMGMA) plant in Bryan County, Georgia, is being reconfigured to accommodate hybrid production. The change reflects changing market realities, with ongoing consumer demand for hybrids as EV uptake continues at a slower pace than expected.
Plant Overview and Production Plans
| Category | Details |
|---|---|
| Plant Investment | $7.6 billion (total Hyundai Group investment) |
| Total Capacity | 500,000 vehicles/year (once fully operational) |
| Kia’s Share | ~40% of output, including hybrid models |
| Production Start | Mid-2026 for Kia hybrids |
| Existing Output | Hyundai IONIQ 9 production began in 2025 |
The Georgia facility began construction in 2022 and is expected to become a key manufacturing hub for Hyundai, Kia, and Genesis vehicles. Initial production is capped at 300,000 units annually, with plans to scale up to 500,000.
Strategic Response to Policy & Demand
- Kia’s localization of hybrid manufacturing comes amid:
- A decelerating U.S. market for all-electric cars.
- Uncertainty over future federal EV incentives.
- New 25% tariffs on vehicle and parts imports, especially from Asia.
By shifting hybrid production from South Korea, where it currently makes models like the Sportage Hybrid, to Georgia, Kia aims to cut costs and avoid potential tariff roadblocks while aligning with U.S. clean energy policy incentives.
Hyundai Motor Group U.S. production, covering both the Hyundai and Kia brands, will come to 1.2 million vehicles annually in the coming several years. The decision to build hybrids domestically is seen as a hedge against shifting consumer preferences and a sign of flexibility in a quickly changing auto industry.
Bottom Line: Kia’s integration into Hyundai’s Georgia EV plant strengthens its U.S. presence and offers a flexible response to market and policy shifts—bridging the gap between hybrids and EVs while keeping production close to home.
