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Hyundai Motor Group is pushing harder into the U.S. market, expanding production and rolling out higher-end models as it seeks to convert recent sales momentum into long-term footholds. Executives say a string of investments — including a major new plant in Georgia — is central to plans to boost local output and broaden the group’s lineup across price points.
Rapid market gains
Since 2020, Hyundai Motor Group — which comprises Hyundai, Kia and luxury brand Genesis — has recorded notable U.S. growth. Mobility Global data show the group’s market share rose from about 8.4% in 2020 to 11.2% through last year, with sales climbing roughly 50% over that period. Through the first half of this year, market share is reported at 11.8%.
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That rate of expansion outpaces most major automakers. Mobility Global identified Tesla as the only other company with a comparable gain, at an estimated 2.1 percentage-point increase.
Hyundai executives say the U.S. performance underpins the group’s broader standing: it is now the fourth best-selling automaker in the country and, they add, among the top globally by sales and operating income. “My top three priorities are U-S-A,” CEO José Muñoz told CNBC after the unveiling of the new Genesis GV90.
Big U.S. investments and local production
The company is accelerating manufacturing in the United States, driven in part by a planned $26 billion investment through 2028. A centerpiece is the new $7.6 billion Georgia facility, known internally as the Metaplant, which currently builds the all-electric Ioniq 5 and Ioniq 9 plus the Kia Sportage hybrid.
Hyundai is weighing a sizeable capacity increase at the Georgia site. Management has discussed raising planned output from 500,000 vehicles to between 700,000 and 800,000 units by 2028. The goal is to manufacture at least 80% of the vehicles it sells in the U.S. domestically by the end of this decade, up from about 40% in 2024.
Muñoz said tariffs announced by the U.S. administration, including a 15% levy on some autos from South Korea, have contributed to the decision to speed localization. “Tariffs are helping accelerate our localization plan,” he said, while noting the company had already begun expanding production plans before tariffs were introduced.
Investors have noticed the expansion: Hyundai Motor shares on the Korea exchange have climbed nearly 250% since 2020, reflecting market enthusiasm for the group’s strategy.
Product strategy: more segments, more luxury
Beyond capacity, Hyundai is diversifying its product mix. The group plans more than 100 vehicle launches and refreshes across Hyundai and Genesis by 2030, including 58 in North America, and will broaden its electrified offerings to include extended-range hybrids.
Kia is pursuing a marked sales increase in the U.S., with an internal target of 1.02 million vehicles by 2030. That push will rely partly on new entries in higher-margin segments such as pickups and body-on-frame SUVs. “We think that’s an important segment to be involved in,” said Eric Watson, Kia America vice president of sales operations.
Hyundai is also moving further upmarket through Genesis. Launched in the U.S. a decade ago, the luxury brand has quickly expanded; the company says Genesis became the fastest-selling luxury marque to reach 1 million global sales. The new GV90 flagship SUV — offered in striking configurations including coach doors and rotating lounge seats — was presented as a statement of the brand’s ambitions.
“From the very beginning, the world took notice of Genesis,” said Tedros Mengiste, Genesis North America chief operating officer, invoking the brand’s internal motto, ha-myeon-dwen-da — “anything is possible.”
Repositioning on value and quality
Hyundai and Kia entered the U.S. market decades ago with competitively priced cars. Over time, executives say the companies invested heavily in quality, design and retail experience to shift public perception from low-cost alternatives to value-driven competitors that offer more features for the price.
“Both Kia and Hyundai are really good at being able to offer more in the vehicle than the consumer expects,” said Stephanie Brinley, associate director at Mobility Global’s AutoIntelligence. That approach, executives add, allows the groups to keep entry-level models priced in the low $20,000s while expanding their presence at the top end — including Genesis models that can exceed $100,000.
Muñoz described the strategy as customer-focused: offer the right product with the right features at the right price, and scale production to support those choices in the U.S. market.
