Hyundai invests $450 million in Montgomery plant for future vehicles

Hyundai Motor Manufacturing Alabama is pouring $450 million into its Montgomery assembly plant to retool for future vehicle production, including...

Hyundai Invests $450 Million in Montgomery Plant for Extended-Range EVs and New SUVs

Hyundai Motor Manufacturing Alabama is pouring $450 million into its Montgomery assembly plant to retool for future vehicle production, including extended-range electric vehicles and future Hyundai vehicles, according to a press release issued on October 28.

The capital infusion will expand the facility’s powertrain capabilities, integrating new engines designed specifically for hybrid and extended-range electric vehicle applications. In these extended-range setups, an onboard gas engine serves as a generator to recharge the battery, while electric motors provide the vehicle propulsion.

Hyundai to invest nearly $450 million in Montgomery plant expansion

Production of the all-new Tucson SUV at the Alabama site is scheduled to begin before the end of 2026. A refreshed Santa Fe will follow. Both models will be a core part of Hyundai’s U.S. product portfolio.

Record US Sales Drive Factory Upgrade

The manufacturing upgrade follows a record-breaking sales quarter for the brand in the United States. In early October, Hyundai Motor America reported its highest third-quarter sales volume in company history, moving 246,896 units. Tucson sales surged 32% year-over-year, while Santa Fe volume climbed 21% over the third quarter of 2025.

Hyundai announces $450 million investment in Montgomery plant for new vehicle productionBy @CalebTTaylor https://t.co/0DxzUD7npD

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Mark Rader, president and CEO of Hyundai Motor Manufacturing Alabama, noted that the infusion strengthens manufacturing flexibility to match shifting consumer demand.

These investments strengthen our manufacturing capabilities, support future vehicle production, and ensure HMMA remains a cornerstone of Hyundai’s North American manufacturing operations for years to come.

The $450 million project pushes total capital investment in the Montgomery plant to nearly $2.2 billion since 2005. It also supports the broader corporate goal established by Hyundai Motor Group to invest $26 billion across the United States between 2025 and 2028.