Look for the Santa Fe EREV next year
Hyundai already offers gas, electric, and hybrid cars like the facelifted Tucson, but it’s about to go further. In fact, it’s doing so with an investment of nearly $450 million in Montgomery, Alabama. The brand will spend the money on its current plant to expand engine production for support of hybrids and range-extended electric vehicles. For buyers interested in electric propulsion who still want a gasoline backup, that factory work could soon pay off in the showroom.
According to Alabama Governor Kay Ivey’s office, the investment will also prepare Hyundai Motor Manufacturing Alabama for the refreshed Santa Fe and all-new Tucson. Officials celebrated the announcement on October 28, tying the production upgrades to a broader expansion of the plant’s powertrain capabilities. The governor also confirmed that hybrid versions of the next-gen Tucson will be part of the plant’s future products. It’s clearly just one piece of a broader strategy moving forward for Hyundai in Alabama.
Upcoming Hyundai EREV vehicles
The range-extender portion is especially interesting given market conditions. Hyundai already confirmed that the Santa Fe EREV will come out of the Alabama facility. It’ll arrive at dealers in the first half of 2027 with an expected range of more than 600 miles. To achieve that range, the vehicle features a typical EV powertrain with a small ICE that runs solely to charge the battery pack. Notably, Hyundai hasn’t announced a 600-mile battery-only Santa Fe. That said, it remains a manufacturer target, so buyers will have to wait for the production specifications and official ratings to see how the finished SUV measures up.
Ultimately, the benefit of vehicles like the Genesis GV90 EREV is obvious. Folks who want to run on battery power alone can do exactly that. Then, when the need calls for it, the combustion engine on board will charge the battery. Put another way, range anxiety will have no hold on the owner since charging simply requires a trip to the gas station. The downside is carrying around the additional mass associated with an electric drive system and combustion hardware, and the packaging and maintenance considerations that come with it.
Hyundai’s hybrid future
The Alabama expansion fits a larger push for Hyundai. At its 2026 CEO Investor Day, the automaker said North America would offer more than 10 hybrid models by 2030, since hybrids account for half the regional sales mix. Production will span the Alabama operation and Hyundai Motor Group Metaplant America in Georgia. Hyundai also raised its North American parts sourcing target to 80% by the end of the decade. Building more electrified vehicles and the associated components in the region is a substantial part of the plan and should lessen the effect of tariffs.
Montgomery already employs around 4,200 people, according to state officials. The latest announcement ultimately broadens the work the facility can handle. The remaining questions are the ones buyers will care about most. How much will it cost and how efficient will it be? And, of course, how far the Santa Fe EREV can travel before its engine starts.
