Hyundai Motor Company and Kia are intensifying their efforts to capture the No. 2 position in the U.S. hybrid vehicle market as consumer demand for gasoline-electric models rises. The automakers are expanding hybrid production at their facility in Georgia, known as Hyundai Motor Group Metaplant America (HMGMA), to mitigate tariff costs and enhance production efficiency. Following the expiration of federal electric vehicle tax credits in September 2025, hybrid vehicle penetration in the U.S. grew from 10.1% in 2024 to 13.7% in early 2025. In the first quarter of 2025, Hyundai's share of the hybrid market increased to 10.9%, while Kia's share rose to 7.9%. Together, the companies sold 97,627 hybrid vehicles, reflecting a 53.2% increase from the previous year. Analysts suggest that sustained high fuel prices could further boost hybrid demand. Hyundai and Kia plan to produce additional hybrid models, including the Sportage and Palisade, at HMGMA, aiming to reduce tariff burdens and improve market competitiveness against established players like Toyota and Honda.