TheKoreaHerald: US bill puts the brakes on Hyundai, Kia’s EV ambitions

No more than three months after the announcement of a $5.54 billion dollar investment by Hyundai – Kia to build a dedicated EV manufacturing plant in Bryan County, Georgia; the United States government passes a bill killing subsidies previously offered on eco-friendly cars manufactured in South Korea.

The Korea Herald reports, “Hyundai Motor Group’s ambitious green push has hit a snag in the all-important US market as President Joe Biden on Tuesday signed a new bill that has immediately scrapped subsidies for electric vehicles made outside America.”

“Under the $430 billion Inflation Reduction Act, up to $7,500 of tax credits will be offered to “Made in US” EVs to help lift the portion of eco-friendly vehicles to 50 percent of all car sales in the local market by 2030.”

“Hyundai Motor and its smaller affiliate Kia have not yet secured production facilities for EVs in the US. They therefore cannot benefit from the hefty incentives designed to lure consumers into choosing EVs over conventional combustion engine cars.”

“But the [new Georgia EV] plant, with an annual production capacity of some 300,000 vehicles, is expected to start production no earlier than the first half of 2025.”

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