On the Dash:
- Hyundai Motor Manufacturing Alabama plans to invest $450 million to expand engine production and prepare for future vehicle programs.
- The plant will add capabilities for hybrid and extended-range electric vehicle powertrains while preparing to build the refreshed Santa Fe and all-new Tucson.
- The investment brings Hyundai’s total spending at the Montgomery plant to nearly $2.2 billion since 2005 and supports the automaker’s broader U.S. manufacturing expansion.
Hyundai Motor Manufacturing Alabama (HMMA) announced a $450 million investment in its Montgomery assembly plant on October 28. This investment aims to expand engine production capabilities, support extended-range EV technology, and prepare the facility for future Hyundai vehicle production.
The planned upgrades will include new equipment, tooling, and manufacturing infrastructure. Hyundai Alabama President and CEO Mark Rader stated that these projects will enhance the plant’s manufacturing capabilities and facilitate future vehicle production.
The projects will broaden the plant’s powertrain offerings, including engines designed for hybrid and extended-range electric vehicle (EREV) applications. In an EREV, a gasoline engine functions as a generator to recharge the battery while electric motors provide propulsion.
According to the automaker, Hyundai plans to introduce an EREV system with two electric motors and a targeted driving range of over 600 miles. Additionally, production of the all-new Tucson SUV in Alabama is scheduled to commence before the end of 2026, followed by the refreshed Santa Fe model. Both vehicles are anticipated to remain central to Hyundai’s U.S. vehicle lineup. Notably, Hyundai Motor America reported a record third-quarter sales total of 246,896 vehicles in 2026, with Tucson sales increasing by 32% year-over-year during the third quarter, while Santa Fe sales rose by 21%.
This latest investment brings Hyundai’s total investment in the Alabama plant to nearly $2.2 billion since 2005. Additionally, it contributes to Hyundai Motor Group’s plan to invest $26 billion in the United States between 2025 and 2028. Further, the automaker plans to enhance supply chain localization in key markets to reduce costs and stabilize supply. During the 2026 CEO Investor Day, the automaker outlined plans to introduce 36 new or enhanced models in North America by 2030. According to Hyundai Motor’s CEO, Jose Munoz, Hyundai also aims to source 80% of parts from local suppliers for vehicles manufactured in North America by 2030, up from the current 60%.
