Hyundai is making another major investment in Alabama and Montgomery.
Jose Munoz, president of Hyundai Motor Company, announced during a presentation at the 2026 Automotive News Congress in Detroit that the company plans to shift production of its Hyundai Tucson hybrid line from South Korea to Montgomery and invest “about a half-billion dollars” in the state, according to Automotive News.
The investment will expand production at the Montgomery facility to include new engines and components and increase its capacity to produce electric powertrains.
“We are bringing the Tucson hybrids to Alabama, and then we will also bring the Santa Fe,” Munoz said during a fireside chat at the event.
Munoz’s announcement follows an August announcement from the company that the Alabama plant would significantly increase production, including launching up to five new vehicle models in 2027. Those plans include the all-new Tucson and Tucson hybrid models and the Santa Fe Extended-Range Electric Vehicle.
The company appears poised to produce more of its high-capacity vehicles at the Montgomery plant after moving production of its high-end Genesis line back to South Korea to make room for expanded production.
Montgomery also appears positioned to serve as a major hub for the company’s electric and hybrid vehicle production. Hybrid vehicles have driven much of Hyundai’s recent sales growth, helping the company outsell Ford in the last quarter on strong hybrid sales.
The roughly $500 million expansion is significant even for Hyundai, which has previously invested more than $1 billion in the Montgomery plant through multiple expansions. Its $410 million investment in 2019 had been the company’s largest expansion at the facility to date.
Those investments and related job growth have helped sustain Montgomery as one of Alabama’s largest economic development success stories in recent years, even as the city and its leadership have faced frequent criticism from Republican lawmakers.
In 2025, Montgomery County ranked third in the state for capital investment and fourth in job creation. In 2024, more than $1 billion was invested in Montgomery.
The Montgomery Chamber of Commerce reported earlier this year that Montgomery has seen more than $5 billion in investment, 100 major projects and nearly 4,000 jobs created over the past five years.
