Shulou(Shulou.com)11/24 Report--

Beijing, September 20 (Xinhua) according to South Korean media and SBS television channels, automotive industry sources revealed that Kia, a subsidiary of Hyundai Motor Group of South Korea, is expected to start producing electric cars in the United States from 2024.

The inflation reduction Act signed by the US president last month has dealt a heavy blow to South Korea's Hyundai Motor Company and Kia. Hyundai and Kia occupy the second place in the US electric car market with fashionable long-range models, but because they do not yet produce electric cars in North America, they are not eligible for a tax credit. Hyundai insiders, parts suppliers, analysts and car dealers all say they will deal a blow to their electric car ambitions, at least in the short term.

Under the new rules, only about 20 electric vehicles, including some models of Ford, BMW, General Motors and Tesla, are eligible for subsidies. The bill also requires major battery materials and components to be purchased from the North American market from 2023.

About three months ago, Hyundai Motor Group announced an investment of more than $10 billion in the United States, including a $5.5 billion electric car plant in Georgia. At that time, the President of the United States thanked: "Thank you again for choosing the United States, we will not let you down."

Shortly afterwards, the inflation reduction Act caught Hyundai by surprise. "this is a big trouble," insiders said.

The chairman of Hyundai Motor Group went to Washington last week, and South Korean officials also met with the United States to discuss the matter, saying that the new law may violate treaties such as the U.S.-South Korea free trade agreement, and asked the United States to postpone the completion of the new plant in Georgia until 2025.

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