Hyundai Motor Group may face an annual revenue loss of up to 2.7 trillion won ($1.94 billion) in electric vehicle (EV) sales in the United States following the enactment of a new U.S. tax law, according to a report by the Federation of Korean Industries (FKI) released on Saturday.
The legislation, titled the “One Big Beautiful Bill Act” (OBBBA), came into effect on July 4 and repeals several clean energy incentives introduced under the previous Inflation Reduction Act. A key provision includes the early expiration of the EV purchase tax credit, now set to end in September 2025 — about seven years earlier than previously planned.
According to the FKI, the loss of these tax credits could result in a drop of as many as 45,828 units in Hyundai’s annual EV sales in the U.S., significantly impacting models such as the Hyundai Ioniq 5 and Ioniq 9, Kia EV6 and EV9, and the Genesis Electrified GV70 — all of which had qualified for the credit earlier this year.
Hyundai Motor Group had committed $8 billion to its Hyundai Motor Group Metaplant America (HMGMA) in Georgia, a dedicated EV manufacturing facility, aiming to expand its market share in North America. However, the new U.S. tax policy has raised concerns over the viability and profitability of that investment.
In response, the FKI is urging South Korea’s National Assembly to take swift fiscal action, including passing a revision to the Korea Development Bank Act to create a 50 trillion won “Advanced Strategic Industry Fund” and providing state guarantees on related bonds. The organization also recommends establishing a dedicated unit within the Korea Development Bank to streamline the execution of support measures for the affected EV and battery sectors.
Source: Business Korea
