(CTN News) – Earlier this week, Hyundai broke ground on a £1.5bn electric vehicle manufacturing plant, its first new domestic plant in 29 years, in the South Korean city of Ulsan.
In the first quarter of 2026, Hyundai will have a capacity of 200,000 units per year when it begins production at the 548,000-square-meter plant, making it the world’s third-largest automaker by sales. It is expected to start production in the first quarter of 2026.
It is expected that the Genesis SUV will be the first marque to be assembled there.
It’s no secret that Ulsan is Hyundai’s hometown, and it is already home to five of the company’s facilities. As a result, they form the largest single plant in the world for the production of automobiles.
Hyundai says that the plant will be a “people-centric” facility with “innovative manufacturing platforms, as well as optimal conditions for workers that will promote safety and efficiency at work”.
During the groundbreaking ceremony, Young-jin Jang, Korea’s deputy minister for trade and industry, made the following statement: “I believe Hyundai Motor will stand out as a powerhouse in the electric vehicle era through decisive investments that it has already made.”.
In order to improve the business investment climate, the government will implement bold tax incentives and eliminate regulations that will hinder economic growth as part of the plan to support business investment.”
There has been a slowdown in the investment plans of several automotive companies, for fear that the demand for electric vehicles is going to curb off in the future.
It has been observed in recent months that Tesla, General Motors, Ford, and Toyota have all taken their foot off the electric vehicle accelerator.
In spite of this, Euisun Chung, Hyundai’s executive vice president, stated that his company was monitoring the sentiment in the EV market. Despite the lack of charging infrastructure, he believed the trend in the EV market was positive.