Hyundai is adding hybrid production to its upcoming Georgia facility, initially intended for fully electric vehicles.
The automaker will now build hybrid models, such as the Tucson, at the Bryan Country factory after posting its first-quarter earnings. Hyundai previously intended the plant for EV production only but changed its mind after the first quarter of this year.
During the company’s quarterly shareholders call, Hyundai executives noted the start of the year had seen “sharply rising hybrid demand,” making the new expansion in Georgia a necessity. While battery-powered car sales have also risen, an increasing number of consumers have opted for hybrids due to their accessibility, causing the segment to outpace growth in the EV market in certain regions.
This trend also impacted Hyundai during the first quarter, which saw the company’s EV sales share shrink while hybrids grew.
The new hybrid-and-EV Georgia factory is scheduled to begin operating later this year. Hyundai says the plant will make up to 300,000 units annually but can expand its capacity up to 500,000.