South Korean Hyundai Wia Corporation plans to begin production of engines for hybrid electric vehicles (HEVs) in Mexico in 2026, to meet growing demand from Hyundai Motor Group’s (HMG) operations in North America, according to reports in South Korea. Hyundai Wia is a core unit of HMG, producing drivetrain modules and components such as engines, transmissions, CV joints and 4WD systems, as well as robots and smart factory solutions.
Production capacity at the plant, located in Nuevo Leon in the Mexican state of Monterrey, will be expanded to 200,000 engines per year, despite the threat of higher tariffs on imports from Mexico into the US under newly-elected president Donald Trump. Hyundai Wia mainly aims to increase output of 1.6L Gamma engines used in hybrid electric vehicles, produced under the Hyundai, Kia and Genesis brands in North America.
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While sales of battery electric vehicles (BEVs) in the region have so far disappointed, demand for HEVs has grown strongly in the last few years. Hyundai-Kia’s combined HEV sales in the US grew to 220,000 units last year, with a further 150,000 sold in Mexico.
The newly-built Hyundai Motor Group Metaplant America (HMGMA) in the US state of Georgia, was originally intended to produce only BEVs, but will now also produce hybrid models.
