Hyundai is ready to increase production capacity in America, not caring about tariff and immigration raids

JAKARTA - Hyundai has reaffirmed its commitment to continue to expand its role in the United States market. Even though, facing challenges in the form of new automotive tariffs and US immigration authorities (ICE) raids at the location of the battery plant construction in Georgia.

The South Korean automaker plans to increase local production capacity as a long-term strategic move. "We will increase production capacity in Georgia, exceeding what we have announced," said Hyundai Motor CEO Jose Munoz, reported by Electrek, Wednesday, December 17.

Munoz ensured that Hyundai remained on track to invest 26 billion US dollars to boost sales in the United States in the next four years. Of the total, about 2.7 billion US dollars was allocated specifically for Georgia.

That's in addition to the $12.6 billion investment poured into Hyundai Motor Group Metaplant America (HMGMA) and other supporting facilities. Regarding tariff policy, Munoz said the reduction of US automotive tariffs from 25 percent to 15 percent did not change the company's main strategy.

"It's very simple, namely localization," he said.

This statement comes amid public scrutiny after more than 300 South Korean workers were detained in an ICE raid on the Hyundai battery plant construction project with LG Energy Solution last September. The incident triggered criticism and widespread attention, but Hyundai insisted that the project was still going according to plan.

Hyundai's investment in Georgia is said to be the largest in the state's history. Overall, the project is expected to create around 40 thousand jobs, covering manufacturing facilities, battery plants, and supplier networks.

As capacity increases at HMGMA, Hyundai will also continue to recruit until the factory is fully operational. Munoz revealed that the company is developing various projects in a number of sectors, ranging from robotics to artificial intelligence (AI).

Although initially designed specifically to produce electric vehicles, this facility is projected to start assembling hybrid vehicles in 2026. On the other hand, Hyundai is also making adjustments to maintain competitiveness.

"We are taking steps to remain competitive and optimize costs," Munoz explained, including by localizing supply chains, not just production.

Hyundai's sales performance in the US shows a positive trend. During the first 11 months of 2025, sales reached nearly 823,000 units, up 8 percent compared to the same period last year. This achievement puts Hyundai on track to set a record for the fifth consecutive retail sales.

To maintain momentum, Hyundai also compensated for the loss of federal electric vehicle tax incentives worth US$7,500 by offering an aggressive discount program. One of the results can be seen on the Ioniq 5.

The electric car is one of the most affordable EVs on the US market with a rental scheme starting at 189 US dollars per month. This model is produced directly in Georgia along with the three-row configured Ioniq 9, strengthening Hyundai's localization strategy in Uncle Sam's country.