Governor Kay Ivey and Hyundai Motor Manufacturing Alabama (HMMA) announced on Wednesday a nearly $450 million investment to expand production at the company’s Montgomery facility. This latest funding brings HMMA’s total investment in the site to nearly $2.2 billion since production first began in 2005.
The expansion is designed to increase engine production to support extended-range electric vehicle technologies and hybrid options. According to HMMA Chief Operating Officer Mark Rader, the investment will provide customers with “greater choice and flexibility” through advanced propulsion technologies and expanded manufacturing capabilities as the automotive industry evolves.
Hyundai is moving the Tucson hybrid from Korea to Montgomery.Hyundai Motor Company President and CEO José Muñoz said Tuesday the automaker will invest “about half a billion dollars” at its Alabama manufacturing facilities to build new engines, hybrid components and an… pic.twitter.com/pdKiim43iV
Montgomery Plant Prepares for New Tucson and Santa Fe
The Montgomery plant is being prepared for the production of the all-new Tucson and a refreshed version of the Santa Fe, both of which are described as important products in the global lineup for Hyundai. Rader stated that the investment reflects confidence in the facility, the supplier network, the workforce, and the state of Alabama.
The facility also produces the Sonata and Elantra sedans.

Economic Impact on Montgomery
The HMMA site currently employs 4,200 team members. Together with its suppliers, the facility generates an annual economic impact exceeding $5 billion, contributing approximately $100 million in state tax revenue and more than $12 million in local tax revenue each year.
Montgomery Mayor Steven Reed noted that the partnership has helped shape the city’s economy for over two decades. He said he looks forward to “creating even more opportunities for Montgomery residents.” Additionally, Hyundai has donated nearly $1 million annually over the last four years to public school systems, regional charities, and quality of life initiatives throughout and beyond the River Region.
Business in Alabama is BOOMING.Hyundai’s MASSIVE investment in its Montgomery facilities will be huge for Alabama’s workers and our state’s economy.https://t.co/y12Rso3Ox7
Montgomery County Commission Chairman Doug Singleton added that the company is a powerful example of a community that works together and plans for the future.
Regional Manufacturing Growth
Alabama Department of Commerce Secretary Ellen McNair said the investment will strengthen manufacturing capabilities and prepare the workforce for the next generation of vehicles. Rader added that the project’s benefits will extend beyond Montgomery to create opportunities across the state, reinforcing Alabama’s status as a leading center for automotive manufacturing in the United States.

Alabama is the fifth largest producer of light trucks and cars in the U.S., with 57,000 jobs in automotive manufacturing and more than 150 major suppliers.