Kia has begun producing its flagship Sportage Hybrid SUV in the US, aiming to capture growing demand for hybrid vehicles in North America while navigating looming auto tariffs.
Kia America held a ceremony Tuesday to mark the launch of mass production of the vehicle. The event was attended by key figures, including Heo Tae-yang, executive vice president and CEO of Hyundai Motor Group Metaplant America, Yoon Seung-kyu, president of Kia North America and CEO of Kia America, and Georgia Gov. Brian Kemp.
The Sportage Hybrid is the first Kia vehicle and the group’s first hybrid model to be produced at HMGMA, which was completed last year in Ellabell, Georgia. It is also the third mass-produced vehicle at the facility, following the Hyundai Ioniq 5 and Ioniq 9.
The first Sportage Hybrid produced at HMGMA was delivered by the group’s autonomous mobile robot designed to transport auto parts throughout the facility without human intervention. The company said the robot highlights the plant’s advanced automation capabilities.
By combining the production capacity of Kia Georgia’s manufacturing plant in West Point with HMGMA’s output, Kia expects to increase its annual production capacity in Georgia to as many as 550,000 vehicles by 2030.
Kia plans to expand profitable SUV production in the US and accelerate the electrification of its overall product lineup.
The Sportage Hybrid is expected to bolster the group’s hybrid push in the all-important market, where hybrid SUVs have emerged as one of the fastest-growing vehicle models, supported by strong consumer demand for fuel-efficient vehicles that offer lower operating costs and long-distance driving capability.
The move also aligns with Hyundai Motor Group’s effort to expand profitable vehicle sales as a means to weather a challenging trade environment, including 15 percent tariffs on imported vehicles.
The strategy has already delivered results. In the first quarter of this year, the group posted a record 430,720 vehicle sales in the US, driven primarily by strong demand for hybrid models. Hyundai’s hybrid sales jumped 55 percent year-on-year to 55,416 units, while Kia recorded a 51 percent increase, with 42,211 hybrid vehicles sold during the period.
hyejin2@heraldcorp.com
