Hyundai To Invest $500 Million For The Next-Gen Tucson Production

Local production is essential for automotive success in the U.S., prompting major manufacturers to establish and expand their domestic assembly plants to maintain competitiveness.

Manufacturers are scaling domestic production to align with federal policy, safeguard jobs, and strengthen supply chains. Through significant capital investments—such as Hyundai’s $500 million Alabama expansion—automakers are retooling plants for advanced technologies like EREVs and high-demand vehicle platforms, ensuring long-term competitiveness in the U.S. market.

Hyundai is investing $500 million to expand its Montgomery, Alabama, plant to support future vehicle production, engine manufacturing, and next-generation propulsion technologies. This brings Hyundai’s total Alabama investment to $2.2 billion since 2005, with plans to reach $2.6 billion by 2028. This move aims to secure the facility’s role as a cornerstone of Hyundai’s North American operations.

The $500 million Hyundai Alabama expansion will retool the plant for Extended Range Electric Vehicle (EREV) production, alongside the new Tucson and refreshed Santa Fe. As critical U.S. models, the Tucson—Hyundai’s best-seller—will begin production by year-end. This new, compact EREV architecture aims to be lighter and more energy-efficient than existing systems.

• Also See: Hyundai Sales Boosted By Strong India And US Demand