Hyundai Motor Manufacturing Alabama is investing nearly $450 million to expand its engine production capabilities in Montgomery, Alabama. The investment aims to support the production of engines for hybrid and range-extended electric vehicles.
According to the Alabama Governor's office, the expansion will also prepare the plant for the production of the refreshed Santa Fe and the all-new Tucson. Hybrid versions of the next-generation Tucson are also confirmed as future products from the facility. Officials announced the production upgrades on October 28, linking them to a broader expansion of the plant's powertrain capabilities.
The Santa Fe EREV is expected to be produced at the Alabama facility and arrive at dealerships in the first half of 2027. This model is projected to offer a range of over 600 miles, utilizing an EV powertrain with a small internal combustion engine that functions solely to charge the battery pack. Hyundai has not announced a battery-only Santa Fe with a 600-mile range.
This expansion aligns with Hyundai's broader strategy for North America, where it plans to offer more than 10 hybrid models by 2030. Production for these models will occur at both the Alabama operation and the Hyundai Motor Group Metaplant America in Georgia. Hyundai also aims to increase its North American parts sourcing target to 80% by the end of the decade.