Company and Union Briefing
Asan Plant Expands from Sedan Models to Large Electric SUVs
Production Bases Beyond Ulsan and Hwaseong
Hyundai Motor has decided to manufacture the large electric sport utility vehicle (SUV) Ioniq 7 at its Asan plant. The Ioniq 7 is the third dedicated electric vehicle following the Ioniq 5 and 6, currently under development with a target launch next year. The Asan plant has mainly produced Hyundai's flagship sedans such as Sonata and Grandeur, but it will now also cover large electric SUVs, which are expected to have high overseas demand.
Hyundai Motor Company's final assembly line for the Ioniq 6 at the Asan plant. It is the company's first dedicated electric vehicle in the sedan category. Last month, the company informed the labor union at the Asan plant about the new vehicle allocation and held a related briefing session. The Ioniq 7 shares the E-GMP platform, developed exclusively for electric vehicles, with Kia's large SUV EV9, which is set to be released this month. There has been significant interest inside and outside the company regarding which domestic Hyundai plant will be assigned the Ioniq 7. The Ulsan plant, which produces internal combustion engine large SUVs, has also requested the company to allocate the Ioniq 7, which is expected to be a key electrified model.
In South Korea, Hyundai manufactures passenger cars and 1-ton trucks at the Ulsan (factories 1 to 5) and Asan plants, while the Jeonju plant produces commercial vehicles such as large trucks and buses. Besides the Sonata and Grandeur, the Asan plant has been producing Hyundai's second dedicated electric vehicle, the Ioniq 6, since last year.
As global manufacturers accelerate the shift to electrification, large electric SUVs are expected to see strong demand, especially in advanced markets such as the United States and Europe. Kia plans to launch the EV9, considered a sibling model to the Ioniq 7, domestically this month and introduce it to Europe in the second half of this year. The U.S. market is also reportedly coordinating for a possible launch as early as this fall. The plan to deploy the vehicle overseas just months after its domestic release reflects a strong intention to secure an early market lead. Large electric SUVs with three-row seating remain rare models in the global market.
With the Asan plant producing the electric sedan Ioniq 6 and now the Ioniq 7, the domestic electric vehicle production base is expected to diversify. As domestic electric vehicle production increases, the production base, which has so far been dominated by the dual powerhouses of Ulsan (Hyundai) and Hwaseong (Kia) in Gyeonggi Province, will now be joined by Gwangmyeong (Kia) in Gyeonggi and Asan (Hyundai) in Chungnam Province.
According to electric vehicle export statistics, Ulsan and Hwaseong accounted for more than 90% of domestic electric vehicle exports in 2022. Kia’s Gwangmyeong plant is undergoing facility conversion work from this month until the end of the year to prepare for new electric vehicle production. It is known that from as early as next year, the plant will produce small SUV-class electric vehicles. Additionally, KG Mobility (Pyeongtaek) is preparing to launch a new electric vehicle in the second half of this year, and Renault Korea Motors is also in discussions with its headquarters to produce electric vehicles at its Busan plant.
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