Kia’s best-selling Sportage SUV will become the first hybrid model to roll off Hyundai Motor Group’s Metaplant America (HMGMA) in Georgia, with mass production scheduled to begin in September, according to a source familiar with the plan.
The move marks a significant step in Hyundai Motor Group’s strategy to expand hybrid production as demand for electric vehicles (EVs) slows. Currently, the Georgia plant produces only Hyundai Ioniq 5 and Ioniq 9 EVs.
“Work is underway at the Georgia plant to install an additional production line for hybrid vehicles, with mass production expected to start around September,” the source told Korea JoongAng Daily, speaking on condition of anonymity. “Production will begin with the Sportage, with capacity gradually increasing over time.”
The decision is also seen as a response to U.S. tariffs, which currently impose about a 15 percent duty on imported vehicles from Korea, a notable change from the zero-tariff regime under the previous bilateral free trade agreement.
HMGMA, which opened in March last year with an annual capacity of 300,000 vehicles, produced only 62,000 units last year amid a slowdown in EV output. The introduction of hybrid production is expected to boost overall volume.
The Sportage was Kia’s top-selling model in the U.S. last year, with 182,823 units sold, including 63,390 hybrid variants—roughly 35 percent of total sales. Among Hyundai and Kia’s hybrid lineup, the Sportage hybrid ranked second in U.S. sales, behind only the Tucson Hybrid, which sold 72,578 units.
Until now, all Sportage hybrids destined for the U.S. market were manufactured in Kia’s Gwangju plant and exported. Hyundai is also working to localize production of the Tucson Hybrid, currently made at its Ulsan plant, at its Alabama facility. Hyundai already produces the Santa Fe Hybrid in Alabama, while Kia recently began manufacturing the Telluride Hybrid in Georgia.
The automaker’s U.S. presence continues to grow despite the EV slowdown, fueled by strong hybrid demand. Combined hybrid sales from Hyundai and Kia reached a record 331,023 units last year, up 48.8 percent from the previous year. Hyundai alone sold 189,881 hybrid vehicles, nearly three times its U.S. EV sales of 69,533 units. Hybrids accounted for 18 percent of total sales, up from 16 percent last year and 11.1 percent in 2024.
“Hybrid vehicles typically command prices over 10 percent higher than comparable internal-combustion models, which also supports rising average selling prices in the U.S. market,” said Song Sun-jae, analyst at Hana Securities. “The start of hybrid production at HMGMA in 2026 will likely boost Hyundai and Kia’s market share, which we expect to increase from 12 percent in 2026 to 12.4 percent in 2027.”
HMGMA is central to Hyundai Motor Group’s long-term growth strategy in the U.S. The plant has also piloted operations with Atlas humanoid robots developed by Boston Dynamics, and the automaker plans to expand annual production to 500,000 vehicles once fully operational.
