Kia Embraces Hybrid Production in New U.S. Factory

Kia plans to produce hybrid vehicles at Hyundai's new U.S. factory beginning in mid-2026 to meet rising demand. The facility aims for 500,000 vehicles annually, boosting Kia and Hyundai's U.S. capacity. This move coincides with changing U.S. government policies impacting electric vehicle production and tariffs on auto imports.

In a strategic shift to capture the growing market for hybrid vehicles, Kia Corp plans to commence production at Hyundai Motor's new U.S. factory by mid-2026, according to Kia's CEO, Song Ho-sung.

The factory, established under Joe Biden's administration to promote electric vehicles, will now include hybrid cars in its lineup as demand for pure EVs declines and tariffs threaten. Kia vehicles are set to comprise 40% of the facility's output, while Hyundai expands annual production capacity to 500,000 vehicles.

This initiative aligns with the $21 billion investment plan announced by Donald Trump and Hyundai's chairman, amidst potential impacts from new tariffs on auto imports. Kia aims to increase its U.S. sales significantly, supported by this new manufacturing capability.

(With inputs from agencies.)