Kia Corp of South Korea plans to manufacture hybrid vehicles at Hyundai Motor's new U.S. factory from mid-2026 to meet the increasing demand. The specific models have not been disclosed by Kia's CEO. Hyundai, which is ranked as the world's third-largest automaker including its affiliate Kia Motors, initiated the construction of an electric car plant in Georgia in 2022 under the Biden administration's support for electric vehicles. Despite a focus on electric cars, Hyundai is now adjusting its strategy to incorporate hybrid cars in response to a decline in electric car demand and the threat of EV subsidy cuts under the Trump administration. Kia is expected to account for 40% of the total production at the Georgia facility, with plans to scale up annual production capacity to 500,000 vehicles from the originally planned 300,000, bringing the total combined U.S. production capacity of Hyundai and Kia to 1.2 million vehicles annually. This expansion is part of the $21 billion investment announced by Hyundai and Trump at the White House recently. South Korea is a major vehicle exporter to the U.S., alongside Japan and Mexico. Kia Motors mainly produces its hybrid cars in South Korea, including the Sportage hybrid crossover. The new U.S. factory is seen as instrumental in helping Kia achieve its goal of increasing U.S. sales to 1.25 million vehicles annually from the current 850,000.