Hyundai Motor will invest an additional $500 million, or about 678 billion won, at its Alabama plant to develop and produce hybrid components, new engines and EREV (extended-range electric vehicle) powertrains. Hyundai Motor President and CEO Jose Munoz said the facility will first build the Tucson Hybrid and later the Santa Fe EREV. Local production would help Hyundai avoid the 15% U.S. tariff on Korean-made vehicles and parts while allowing faster responses to demand. Hyundai and Kia (000270) held a combined 12.1% of the U.S. market in July and August, selling 343,689 vehicles and surpassing Ford for third place; their 12.9% share in August was a record. Hyundai hybrid sales rose 33% year over year in August, while hybrids accounted for about 31% of Tucson sales last year, compared with about 12% in 2021. The Santa Fe EREV is scheduled to enter the U.S. market in the first half of next year. The investment forms part of Hyundai Motor Group's $26 billion U.S. plan, which targets annual North American production capacity of 500,000 vehicles by 2028 and local parts sourcing of about 80%. Hyundai is also developing a body-on-frame pickup truck for launch before 2030.