Hyundai Motor Group, the third-largest global automaker, has launched test operations at South Korea’s first dedicated electric vehicle (EV) factory amid a slowdown in the clean vehicle sector. The test operations are taking place at Kia Corp.’s No. 2 plant in Gwangmyeong, near Seoul, and mark a significant advance in the production of the EV3, a low-cost compact electric SUV. Production of the EV3 is scheduled to begin in June and will utilize the Electric-Global Modular Platform (E-GMP), a proprietary technology developed by Hyundai Motor Group. This initiative aligns with a broader industry trend of introducing more affordable models to stimulate growth in the clean vehicle market. Kia also plans to start manufacturing the electric sedan EV4 at the Gwangmyeong plant early next year.
The decision to convert the No. 2 plant into a dedicated EV facility was made last June, with renovation works completed by the end of the year. Hyundai Motor Group Chairman Chung Euisun highlighted the group’s commitment to electrification in his New Year speech at the plant, positioning it as a catalyst for innovation from South Korea to the global market.
In addition to the Gwangmyeong plant, Hyundai Motor Co., a key unit within the group, is constructing a dedicated EV factory in Ulsan, approximately 300 kilometers southeast of Seoul. The Ulsan plant is expected to commence operations in 2026 and will focus on producing premium Genesis models and large SUVs. Hyundai is also preparing to produce the IONIQ 5 and other EV models at a new manufacturing complex in Georgia, USA.
Kia is developing a separate factory in South Korea specifically for electric purpose-built vehicles, with plans to begin production of the mid-sized model PV5 next year. Furthermore, Hyundai Motor Group has established a future urban mobility hub in Singapore to advance mobility research, development, and business strategies. This hub is involved in manufacturing self-driving robotaxis and testing the IONIQ 5.
To date, Hyundai Motor Co. and Kia have sold 1.5 million EVs, including models from the Genesis brand, produced in both domestic and international facilities that also handle internal combustion engine vehicles. The introduction of dedicated EV plants is expected to lead to adjustments in production volumes at existing factories, according to industry sources in Seoul.
