Hyundai Motor Group, recognized as the third-largest automaker globally, has initiated a test operation at South Korea’s first dedicated electric vehicle (EV) factory, aiming to push forward with its electrification efforts amidst a slowdown in the clean vehicle sector.
The test operation began at Kia Corp.’s No. 2 plant located in Gwangmyeong, adjacent to Seoul. This move marks a significant step towards the production of the EV3, a low-cost compact electric SUV. The EV3’s production, set to commence in June, will utilize the Electric-Global Modular Platform (E-GMP), a proprietary technology of the group. This initiative is part of a broader industry trend where automakers are introducing more affordable models to stimulate growth in the clean vehicle market. Additionally, Kia has plans to start manufacturing the electric sedan EV4 at the Gwangmyeong plant early next year.
The decision to convert the No. 2 plant into a dedicated EV facility was made last June, with the company completing renovation works by the end of the year. Hyundai Motor Group Chairman Chung Euisun, in his New Year speech at the plant, emphasized the group’s commitment to electrification, envisioning it as a catalyst for innovation extending from South Korea to the global market.
Hyundai Motor Co., another key unit within the group, is constructing a dedicated EV factory in Ulsan, about 300 kilometers southeast of Seoul, and is preparing to produce the IONIQ 5 and other EV models at a new manufacturing complex in Georgia, USA. The Ulsan plant, expected to start operations in 2026, will focus on premium Genesis models and large SUVs.
Kia is also developing a factory specifically for electric purpose-built vehicles in South Korea, with plans to start producing the mid-sized model PV5 next year.
Moreover, Hyundai Motor Group has established a future urban mobility hub in Singapore, aimed at advancing mobility research, development, and business strategies. The hub is also involved in manufacturing self-driving robotaxis and the IONIQ 5 for test operations.
To date, Hyundai Motor Co. and Kia have sold 1.5 million EVs, including models from the Genesis brand, produced in both domestic and international facilities that also manufacture internal combustion engine vehicles. The introduction of dedicated EV plants is expected to lead to adjustments in production volumes at existing factories, according to industry sources in Seoul.
