America's EV market: The race is on to meet consumer demand, and Hyundai is running fast

Most Americans can recall the first time they saw an all-electric vehicle on the road.

EVs have been around for 150 years, dating to a battery-powered horse carriage developed in the late-1800s. The first cars without an internal combustion engine didn't become omnipresent on U.S. roadways until about a decade ago, when Nissan released the LEAF and Tesla the Model S in the U.S.

Now, hundreds of thousands of EVs are combing America's streets, and the transition from gas cars to electric ones for automakers has accelerated. What was once anticipated as a marathon is a breathless sprint.

Hyundai is anxious to find its stride. The automaker currently produces two EV models but recently announced plans for eight more before the end of this decade. Some of those models will be manufactured in an assembly plant near Savannah that will soon be under construction.

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Hyundai's schedule reflects the sense of urgency: The facility is scheduled to open in January 2025. Typically, large-scale auto plants take more than five years to come online. Hyundai's plan halves that timeline.

"The electric vehicle market right now is a hot, hot race," said Trip Tollison, president and CEO of the Savannah Economic Development Authority. "Speed to market is extremely important."

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Go bold or go home when it comes to EVs

Hyundai makes the highest-rated EV on the market today in the Ioniq 5, according to MotorTrend, a magazine dedicated to the auto industry. By the end of the year, Hyundai will have 10 EVs in design or production, to include seven SUVs.

Hyundai is making a bold move into EVs, investing more than $10 billion by 2025. The push is meant to progress the automaker's goal "to lead sustainable and smart mobility solutions in the U.S.," according to Ira Gabriel, senior group manager for Hyundai.

“Consumer demand for vehicles is also growing rapidly," he said.

Sales data is driving Hyundai's interest in producing more EVs. The automaker's sales of EVs were up 64% in the first half of 2022.

Hyundai and its sister brands Kia and Genesis will boast a combined 30 EV models by 2030, a daring plan that will set them apart from most automakers. But they will have fierce competition from Toyota, which will more than double Hyundai’s number of models globally by 2025.

Ford, General Motors and Nissan have an impressive lineup of EVs and will be major players too.

It’s not easy being green

EVs currently make up 9% of new car purchases globally, and less than 10% of those are sold in the U.S.

While those numbers are fairly low, automakers think offering more models will catch the attention of consumers who bat their eyes at EVs. Car manufacturers are making a big push for carbon neutrality, trailblazing a path for cleaner air and saving consumers thousands of dollars at the pump and on maintenance repairs.

Case in point: Richmond Hill's Maxim Milchman. He could not wait to get his hands on the Tesla 3. He was intrigued by the technology and the aesthetics of the car. It was love at first sight, and he purchased a Model 3 in October 2020.

But after several rides, Milchman said his experience was not what he expected it to be.

Several months later, he sold it.

“Imagine you are driving a sedan, but the experience is like a convertible,” said Milchman. “It makes all kinds of noises. The quality is very poor.”

Determined to find his dream EV, Milchman did some research and came across the Hyundai IONIQ 5. He was skeptical at first, thinking it could not outperform Tesla.

But it did.

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“I was extremely surprised,” said Milchman. “I didn’t expect it to be that good. It is high quality and has very good suspension. It’s almost like you are driving a Rolls Royce. You don’t feel anything when you are driving.”

Last September, he ordered the Tesla Y hoping he could own at least one vehicle within the Tesla family. But he was surprised to learn that model did not have noise-cancellation built in either.

"The suspension is not as good," said Milchman. "The Tesla is much faster right? But I'm not driving on a track, so I don't care about that. It is much better than the Tesla 3, but it is still noisy. Tesla is not as good as Hyundai. With the Hyundai, the noise cancellation is much better. There are no squeaks, no nothing. The overall experience in the Hyundai is much better.”

Milchman had the luxury of purchasing three EVs in a short amount of time. But most Americans cannot afford to buy one. Hyundai's parent company, Hyundai Motors, is on a mission to change that through its “progress for humanity” campaign. Its lowest-priced EV, the Kia Kona, lists for $34,000.

Even moderately priced EVs such as the Nissan LEAF ($27,800) are out of reach for some buyers.

Price points for a Tesla Model 3 and the Mustang MACH-E — arguably the most talked-about EVs available today — are $40,000 and $43,900 respectfully. Milchman paid around $53,000 for his Hyundai IONIQ.

Gabriel said higher sales will lead to lower cost EVs over time.

“There are many factors involved with the pricing of eco-friendly vehicles, including economy of scale,” said Gabriel. “Large-scale production of battery electric vehicles allows for economies of scale with pricing, and we expect fuel cell technology to be a cost-competitive renewable energy source as well once it achieves economy of scale.”

For now, though, that does not lessen the blow when it comes to the car payment, and replacement batteries for EVs can cost anywhere between $5,000 and $15,000.

Although EVs are environmentally friendly, drivers say it all comes down to how much they are saving at the pump. With gas prices rising, Milchman refused to buy a non-EV. He said it is an expense that cannot be avoided and one he wanted to axe from his budget.

“I don’t like to pay for gas,” said Milchman. “It doesn’t make sense. The car is expensive. It’s an everyday spending thing and something I don’t like.”

But the caveat for EV buyers is to be mindful about where charging stations are located and having an alternative vehicle for emergency trips such as evacuations or a long-term power outage.

“I don’t mind the look and for a daily commute they might be a good alternative,” said Sandra Marston of Richmond Hill. “But I definitely wouldn’t want to go on a longer road trip in an EV. Also friends of mine in Louisiana were out of power for two months after a hurricane, so there is that."

Who will become the biggest EV giant?

With Hyundai and Toyota becoming major players in the EV industry, Ford's Emma Bergg said the American automaker had to "swing for the fences" to ensure its lineup of EVs would compete with the others on the market.

Rather than break into the field with new-to-the-market EV models, Ford decided to electrify two of its most iconic model brands: the sporty Mustang and the F-10 pickup truck.

"This was a pivotal question for Ford’s future. And we had to match the moment with a bold decision," Bergg said.

Hyundai will also face stiff competition from Toyota. By 2025, Toyota plans to have 70 EV models globally, including 15 all-electric vehicles.

“Toyota has always embraced electrification of vehicles from the start of electric powertrain vehicles in 1997 in Japan with the hybrid Prius and understands their importance in meeting customer wants and needs,” said a spokesperson for the company.

The EV age has also spawned startup automakers, and not just Tesla. As of June 30, Rivian has produced nearly 8,000 vehicles. Models include the R1T pickup and the R1S SUV, which will be built at a new plant located in Rutledge, a small town 70 miles east of Atlanta, announced late last year.

Each automaker brings something unique to the table, so the climb to the top of the EV mountain will be arduous. The rapid production and number of new models in coming years mean EV buyers will have a host to choose from. Only time will tell as to who will be at the forefront of the EV evolution.

Latrice Williams is a general assignment reporter covering Bryan and Effingham County. She can be reached at lwilliams6@gannett.com.

This article originally appeared on Savannah Morning News: Hyundai, other automakers quickly expanding portfolio of EV models