A senior official at Hyundai Motor Company has hinted that the automaker may reassess its investment plan in the U.S. state of Georgia if the U.S. Inflation Reduction Act(IRA) hurts business.

Robert Hood, Hyundai’s vice president of government affairs, issued the position on Thursday during a webinar hosted by the Wilson Center while discussing the company’s plans to build its first dedicated electric vehicle and battery manufacturing facilities in Georgia, aiming to start local production in the first half of 2025.

Asked if the IRA could lead to a withdrawal or reduction of the Georgia investment plan, Hood said that it is an economic decision that the firm must continue to monitor.

Noting that the company has to grow its electric vehicle market sales and market share, the official said that a lack of increased sales will bring about questions over the economic practicality of the plant.

He added that although the company received strong incentives from the state, it also had obligations, such as a hiring quota, and a failure to meet these standards may result in penalties.

Hood then said if the IRA continues to potentially harm the firm's growth, the company has no choice but to reevaluate where to go.