Demand for electric vehicles is declining
Hyundai Motor has begun construction of a $1.5 billion plant in South Korea that will produce electric vehicles.
The group, which owns the Hyundai and Kia brands, held a groundbreaking ceremony on Sunday in Ulsan, where the automaker built its first assembly plant in 1968.
The new plant will be capable of producing 200,000 electric vehicles per year. Construction is scheduled to be completed in 2025, and mass production of vehicles will begin in the first quarter of 2026.
The electric crossover from the group’s luxury brand Genesis will be the first model to be produced at the new plant.
Hyundai will produce 200,000 electric vehicles a year at a new $1.5 billion plant
“Just as the dream of building a better car in the past turned Ulsan into a car city today, I believe Ulsan will become an innovative mobility city that will pave the way for the era of electrification, starting with a dedicated electric vehicle manufacturing plant,” said Yusun Chung. Executive Chairman of Hyundai Motor Group.
Experts say the industry is seeing a decline in demand, with electric vehicles remaining unsold on dealer lots longer than gasoline-powered vehicles.
