Hyundai Motor Co plans to temporarily halt production of its Ioniq 5 and Kona Electric models at its Ulsan plant in South Korea for the third time this year, as the automaker continues to grapple with sluggish global electric vehicle (EV) sales.
The production pause will affect Line 2 at the Ulsan facility from May 27 to May 30, according to Newsis reports citing industry sources.
Despite rolling out a domestic discount campaign earlier this month that offered savings of over 6 million won ($4,300) on the Ioniq 5, sales have failed to rebound. Hyundai exported 9,663 units of the Ioniq 5 between January and April, down sharply from 27,476 units in the same period a year earlier. Kona EV exports also fell 42% year-on-year to 3,428 units through April.
“The sluggish sales in the global electric vehicle market have not improved,” Hyundai said in an internal memo cited by Newsis. “We have made every effort to secure additional orders, but we are currently unable to secure the quantity.”
The automaker previously paused EV production in February and April at the same plant. This latest move underscores mounting pressure on South Korean manufacturers amid a broader slowdown in global EV demand.
Meanwhile, Hyundai’s joint venture in China, Beijing Hyundai, reported an improvement of over 100 million won ($72 million) in first-quarter losses and is aiming to return to profitability by the end of 2025 with the launch of a China-specific electric SUV later this year.
In contrast, Hyundai continues to perform strongly in the U.S. market, reporting its seventh consecutive record monthly sales figure. The Ioniq 5 posted sales of over 12,000 units through April, up 14% from a year ago. However, Ioniq 6 sales fell 10% in the same period to 4,424 units. Kona EV sales figures were not disclosed.
Hyundai is currently offering substantial discounts in the U.S., including up to $12,500 in savings on the new Ioniq 9 SUV and lease deals starting at $209 per month for the 2025 Ioniq 5.
