Hyundai Motor announces it will build its first South Korean electric vehicle plant

The Hyundai Motor Company logo is pictured at the New York International Auto Show in Manhattan, New York, U.S., April 13, 2022. REUTERS/Andrew Kelly/File Photo

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SEOUL, July 12 (Reuters) – Hyundai Motor Co (005380.KS) said on Tuesday it will build a dedicated electric vehicle (EV) plant in South Korea, which will become its first auto plant to open in the country in nearly of three decades.

Production is expected to start by 2025, the company’s union said in a statement, relaying a commitment the company made during wage negotiations.

Hyundai Motor did not provide further details in its statement.

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In May, Hyundai Motor Group, which houses Hyundai Motor and Kia Corp (000270.KS), said it would invest 63 trillion won ($48.1 billion) in South Korea through 2025. read the after

Unionized Hyundai Motor workers in South Korea voted this month for a possible strike for the first time in four years to demand higher wages. They were also unhappy that the management prioritized investments outside the country. Read more

Hyundai Motor, South Korea’s largest automaker, last opened an auto plant in South Korea in 1996.

But it announced in May that it would invest $5.5 billion to build comprehensive electric vehicle and battery manufacturing facilities in Georgia. Read more

Electric vehicle installation in Georgia is expected to start in early 2023 and begin commercial production in the first half of 2025, according to Hyundai Motor.

“Sales of internal combustion engine vehicles are expected to be banned in some markets, so the new electric vehicle plant is vital for Hyundai Motor’s survival,” said Chang Moon-su, an analyst at Hyundai Motor Securities, a subsidiary of the Car manufacturer.

Shares of Hyundai Motor were flat at midday, while the benchmark KOSPI (.KS11) was down 1.1%.

($1 = 1,310.5000 won)

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Reporting by Heekyong Yang and Byungwook Kim; Editing by Shri Navaratnam and Bradley Perrett

Our standards: The Thomson Reuters Trust Principles.

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