Hyundai Motor Co. plans to suspend production of its Ioniq 5 and Kona Electric models at its Ulsan plant in South Korea from February 24 to 28, according to reports from South Korean media outlets citing industry insiders. The move comes in response to declining demand for these electric vehicles (EVs).
An internal memo from Hyundai, as reported by The Korea Herald, states: “Sales volume and backorders [for the two car models] are declining. […] The second Trump administrationās reversal of [US] EV policies could prolong the demand slowdown for electric cars.”
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In an effort to stimulate domestic sales, Hyundai has introduced discount campaigns across South Korea. The company is offering discounts ranging from 3 million to 5 million won (approximately $2,500 to $4,200) on nine electric models, including the Ioniq 5, Ioniq 6, and Kona Electric. Kia Corp., Hyundai’s affiliate, has launched similar promotions, providing discounts of up to 3.5 million won on models such as the EV6, EV9, and Niro EV.
A Hyundai Motor official commented, “We have prepared a promotion to contribute to the expansion of electric vehicles in Korea and to ease the burden of electric vehicle purchases for customers. We will continue to strengthen purchase benefits and prepare various programs so that customers can conveniently operate electric vehicles.”
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These initiatives align with the South Korean government’s efforts to boost EV adoption. The government announced plans to spend 1.5 trillion won ($1.02 billion) in 2025 to encourage consumers to purchase electric vehicles, aiming to revitalize domestic demand amid concerns over safety and charging infrastructure.
Hyundai began production of the Ioniq 5 at its plant in Georgia, USA, in October 2024, reducing the volume produced in South Korea for the North American market. Despite these efforts, domestic sales of the Ioniq 5 remain low, with only 75 units sold in South Korea last month.
Source: koreaherald.com,Ā businesskorea.co.kr