Hyundai Shifts Focus to US Market, Scaling Back EV Plans

Automaker announces $26 billion investment in US, but moves away from all-electric vehicles

Apr. 4, 2026 at 10:42pm

Got story updates? Submit your updates here. ›

At the New York Auto Show, Hyundai CEO Jose Munos announced the company is shifting its strategy to focus more on the US market, its largest, investing $26 billion and planning for 80% localization. This includes scaling back its BEV plans and introducing more hybrid models, while unveiling a new body-on-frame SUV concept called the Boulder. Meanwhile, Hyundai's Kia brand surprised with the debut of a new compact electric vehicle, the EV3, hinting at continued EV development within the group.

Why it matters

Hyundai's strategic shift away from EVs and toward more traditional SUVs and pickups for the US market reflects broader industry trends and challenges around electrification. The move raises questions about the future of Hyundai's EV lineup and the company's ability to keep pace with the accelerating global transition to electric vehicles.

The details

Hyundai is scaling back its BEV plans and instead focusing on introducing more hybrid models for the US market. The automaker is also investing heavily in a new steel plant and plans to achieve 80% localization. A new body-on-frame SUV concept called the Boulder was unveiled, which appears to take design cues from classic off-road vehicles. Meanwhile, Hyundai's Kia brand surprised with the debut of a new compact electric vehicle, the EV3, suggesting the group is still pursuing electrification to some degree.

  • On Wednesday, Hyundai made the announcements at the New York Auto Show.
  • In 2024, GM and Hyundai entered an MOU to co-develop vehicles, which was updated in 2025.
  • Production of the Kia EV3 compact electric vehicle is expected to start later this year in Mexico.

The players

Jose Munos

Hyundai's CEO, who announced the company's strategic shift toward the US market and away from a focus on electric vehicles.

Hyundai

The South Korean automaker that is investing $26 billion in the US, scaling back its BEV plans, and introducing more hybrid models and a new body-on-frame SUV concept.

Kia

Hyundai's sister brand that surprised with the debut of a new compact electric vehicle, the EV3, at the New York Auto Show.

GM

The American automaker that entered a partnership with Hyundai in 2024 to co-develop vehicles, including midsized body-on-frame pickups/SUVs, compact cars, and an electric van.

Mary Barra

The CEO of GM, who likely has answers about the broader implications of the Hyundai-GM partnership.

Got photos? Submit your photos here. ›

What they’re saying

“While not on their main stage, Hyundai Group's Kia brand introduced the EV3 prototype at the show. This was a bit of a surprise, given the current environment.”

— Author

“One of the journalists said that it [the Kia EV3] reminded him of a Chinese market vehicle from 2020: more advanced than what people are used to in the US but not up to the current global cutting edge.”

— Journalist

What’s next

The partnership between Hyundai and GM could have broader implications, with the potential for Hyundai-developed vehicles to replace some Chinese-made, Chevy-branded models in Latin America. The future of GM's joint venture with SAIC in China is also uncertain, as the 30-year agreement is set to expire in 2027.

The takeaway

Hyundai's strategic shift away from electric vehicles and toward more traditional SUVs and pickups for the US market reflects the challenges automakers face in balancing consumer demand, regulatory pressures, and the global transition to electrification. The partnership with GM could help maintain scale and viability for smaller, more efficient models and EVs, but the long-term implications remain uncertain.