Did automotive manufacturers overestimate global interest in all-battery electric vehicles?
Over 50% of surveyed consumers in the U.S., India, Southeast Asia and Germany prefer that the engine of their next vehicle be a traditional internal combustion engine (ICE). The UK (47%), Japan (41%) and South Korea (39%) trail behind, yet consumers in these markets are shifting preference to hybrid electric vehicles, as seen with 24% of UK respondents, 35% in Japan and 31% in South Korea. In China, however, consumer engine preferences find more balance among ICE (38%), hybrid electric (16%), plug-in hybrid (17%) and battery electric (27%). The data come from Deloitte’s latest Global Automotive Consumer Study, which received responses from about 31,000 customers across 30 countries.
Automotive manufacturers have poured billions into EV-related production transitions, dedicated EV plants and R&D facilities within the past decade. Despite preference splits throughout global markets, new project investments persist, as one South Korean company’s global growth strategy illustrates.
Raid Doesn’t Keep Hyundai From Doubling Down
Six months after operations officially began at the long-awaited Hyundai Motor Group Metaplant America (HMGMA) campus near Savannah, Georgia, the company spared no time moving into a new phase of expansion, part of a global growth strategy that has other projects also on the rise.
In September, Hyundai CEO José Muñoz took to the stage at an inaugural CEO Investor Day event held in New York to discuss the company’s long-term strategies to redefine the global automotive experience. As the company aims to advance technological innovation, product expansion and manufacturing efficiency to meet its goal of 5.55 million global vehicle sales by 2030, HMGMA emerges as a pivotal player.
Hyundai’s plans for future expansion were no secret. But the timing of the public-facing announcement was jarring, considering just two weeks prior the Ellabell site was the location of the largest single-site enforcement raid performed by U.S. Homeland Security Investigations, Immigration and Customs Enforcement and Bureau of Alcohol, Tobacco, Firearms and Explosives.
“The Joint Development Authority’s perspective was shock,” says Development Authority of Bryan County CEO Ryan Purvis. “We did not know the scope of the raid until later that day and of course were concerned for those detained.”
The unexpected raid followed an investigation looking into allegations of unlawful employment of individuals that entered the U.S. illegally, overstayed a permitted visa or violated visa policies. Hyundai later stated that none of its direct employees were involved, although operations at the site came to a halt while upwards of 475 individuals were detained. It wasn’t an obstacle Hyundai nor state or local Georgia leadership could have prevented, and the federal operation did not deter the company from its active FDI relations with the state.
“We have a strong working relationship with HL-GA Battery JV and are assisting where we can. Changes to the U.S. visa system are a part of that path forward,” notes Purvis. “At the same time, we fully expect all industries to abide by the laws in place.”
Purvis says while knowledge of a further expansion was known, he didn’t know how quickly it would occur. With a fresh $2.7 billion investment in place, HMGMA will undergo its second phase of expansion over the next three years. This work will scale the site’s current 300,000-unit production capacity to 500,000 units annually, placing HMGMA’s output at the top of a growing global portfolio including sites in India, South Korea, Saudi Arabia, Vietnam and North Africa.
Hyundai will manufacture 10 hybrid and EV models, integrating Boston Dynamics’ robotic technologies in the process. Hyundai’s ambitious goal of producing 80% of its vehicles sold in the U.S. domestically will take advantage of the site’s proximity to the Port of Savannah, an international airport, Class I railroads and two major Interstate highways that provide access to more than half of the U.S. population within a two-day drive.
“Even more, the expansion is expected to generate approximately 3,000 more jobs,” says Purvis. “As we engage with our neighbors and friends on the ball fields, at the schools, at church or other social gatherings that are working at the plant, the impact becomes personal. The community is excited about the prospect and continues to prepare accordingly.”
By 2031, Hyundai expects to bring its total jobs impact to 11,500 in the coastal Georgia region. Purvis says phenomenal partnerships formed among the region’s military bases, technical colleges and higher education institutions, combined with support from local leadership and workforce development organizations, have the community well positioned to thrive in years to come. That position got stronger in mid-October when Hyundai stepped forward with a $5 million donation to Savannah State University that will result in the naming of the school’s College of Education. Founded in 1890, Savannah State University is Georgia’s oldest historically Black public university.
Global Supply Chain Resilience
Beyond Hyundai’s activity in Georgia, the company’s greater $26 billion investment into its U.S. operations over the next three years will additionally bring a new steel mill to Louisiana, expansions to Hyundai and Kia automotive production capacities and the establishment of a new Robotics Innovation Hub in a yet-to-be-disclosed U.S. location.
On a global scale, Hyundai’s EV growth strategy is on course. The company plans to increase its hybrid vehicle portfolio to 18 models by 2030, delivering certain models in specific markets. The IONIQ 3 model will be targeted toward European customers, while India is expected to receive its first EV model catering specifically to local drivers. China’s market will receive the Elexio SUV and C-segment electric sedan.
As Hyundai looks to continue to improve the driver experience, its transition to Software-Defined Vehicles (SDF) has become a priority. In October, the company announced a new partnership with Nanyang Technological University, NTU Singapore and the Agency for Science, Technology and Research to launch the Corporate Lab at Hyundai Group Innovation Center Singapore (HMGICS).
This marks the first smart factory and SDF test bed pursued by Hyundai. The HMGICS will become a center for R&D and proof-of-concept activity for advanced manufacturing technologies. Located in Singapore’s Jurong Innovation District, the over 935,000-sq.-ft. facility has the capacity to produce 30,000 EVs annually, integrating a highly automated flexible production system that will allow potential buyers to customize and interact with their vehicles at the site. The companysaid at least 50% of operations at the site will be carried out by an array of 200 robots, operating as a digital twin Meta-Factory. Aside from production, HMGICS serves as a testbed for future mobility solutions such as Purpose Built Vehicles or robotaxis.
