Hyundai to invest $500 million in Alabama to produce Tucson Hybrids

Hyundai Motor Company will invest approximately $500 million in its Montgomery, Alabama manufacturing facility to expand local production capabilities. The investment aims to transition the production of the Tucson Hybrid from South Korea to the United States, a move intended to mitigate potential tariff risks on Korean-built vehicles.

In addition to the Tucson Hybrid, the company plans to produce new engines, hybrid components, and extended-range electric vehicle (EREV) powertrains at the Alabama plant. Hyundai expects to begin mass production of the Santa Fe EREV in the first half of 2027, targeting a driving range of over 600 miles. The redesigned 2027 Tucson and Tucson Hybrid models are scheduled for North American release in the fourth quarter of 2027.

This expansion is part of a broader long-term strategy to increase North American production capacity by 500,000 units annually and raise local parts procurement to 80% by 2030. The Montgomery plant currently employs approximately 4,200 workers and accounts for roughly 40% of Hyundai's vehicle assembly in the United States.