Hyundai WIA Corporation is gearing up to produce engines for hybrid electric vehicles (HEVs) in Mexico by 2026 to cater to the increasing demand from Hyundai Motor Group’s operations in North America. This move by Hyundai Wia, a key unit of HMG specializing in drivetrain modules and components, including engines, transmissions, CV joints, and 4WD systems, as well as robots and smart factory solutions, signifies a strategic expansion in the region.
The production facility, situated in Nuevo Leon, Monterrey, Mexico, will see its capacity ramped up to accommodate 200,000 engines annually. This decision comes amidst concerns about potential tariffs on Mexican imports into the US under the administration of then newly-elected President Donald Trump. The focus of the production expansion will primarily be on the 1.6L Gamma engines used in HEVs under the Hyundai, Kia, and Genesis brands in North America.
While the sales of battery electric vehicles (BEVs) in the region have been relatively lackluster, the demand for HEVs has witnessed a significant uptick in recent years. Hyundai-Kia’s combined HEV sales in the US reached 220,000 units last year, with an additional 150,000 units sold in Mexico. This growing trend has prompted Hyundai Wia to align its production strategy with the evolving market dynamics.
Additionally, the Hyundai Motor Group Metaplant America (HMGMA) in Georgia, USA, initially designated for BEV production, will now also manufacture hybrid models. This shift underscores the automotive industry’s transition towards electrification and the importance of offering a diverse range of eco-friendly vehicles to meet consumer preferences.
In conclusion, Hyundai WIA’s expansion into HEV engine production in Mexico reflects a strategic response to the evolving market demands in North America. With a focus on sustainability and technological innovation, Hyundai Wia is poised to play a significant role in shaping the future of electric mobility in the region.
