The Governor of New Nuevo León, Mexico, introduced a brand new (potential billion-dollar) funding from Kia to broaden its plant within the area and produce two EVs along with Hyundai. The transfer comes as the 2 automakers look to make sure EV fashions qualify for the IRA tax credit score.
After changing into the third largest automaker globally final yr, The Hyundai Motor Group, together with Kia and Genesis, appears to maintain the ball rolling within the new EV period.
Each Hyundai and Kia manufacturers acquired off to a sizzling begin by releasing the IONIQ 5 and EV6 EV fashions, based mostly on the auto group’s devoted E-GMP electrical car platform.
With a number of new releases from all manufacturers beneath the Hyundai umbrella, together with the IONIQ 6, Kona Electic, Kia EV9, and Genesis GV70, the automaker plans to turn out to be a high three international EV producer by 2030.
Nonetheless, after the Inflation Discount Act’s (IRA) requirements set in for brand spanking new EVs to qualify for the $7,500 tax credit score, many Kia and Hyundai fashions have turn out to be ineligible.
Regardless of breaking floor on its first devoted EV plant within the US in October, that facility isn’t anticipated to turn out to be operational till 2025.
With North America being Hyundai’s single largest market, representing over a fifth of gross sales final yr, Hyundai is searching for methods to make sure its EVs will qualify for the tax credit score to safe its market.
Kia, Hyundai to construct EVs in Mexico for IRA tax credit score
The Governor of New Nuevo León, Mexico, Samuel Garcia, revealed Kia’s plans on his Twitter this week, initially saying Kia as soon as once more bets on Nuevo Leon with a “billion greenback funding to broaden its plant and produce two Kia automobile fashions” later enhancing out the billion.
One other retweet from Garcia learn, “#Kia broadcasts billion greenback funding to put in one other plant in #NuevoLeon the place it would produce two new electrical fashions along with Hyundai.”
A translation of Garcia’s personal tweet reads, “Extra excellent news! Nuevo León consolidates because the ELECTROMOBILITY HUB: KIA as soon as once more bets on Nuevo León with an funding to broaden its plant and produce two KIA automobile fashions.”
From Garcia’s put up, it may simply be an enlargement on the automaker’s present 400,000-vehicle capability plant within the space, which started operations in 2016.
In keeping with the pictures Garcia posted on his account, one of many two electrical automobiles might be the brand new flagship EV9. Nonetheless, Kia has already mentioned the electrical SUV might be inbuilt West Level, Georgia, beginning subsequent yr because the model’s first EV assembled within the US.
With the brand new deliberate funding, Garcia says, “We would be the state that produces probably the most electrical automobile fashions: the Tesla mannequin, the KIA mannequin, and the Navistar electrical truck.”
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