Hyundai is gearing up to elevate its top-selling EV, the Ioniq 5, by making it the first electric vehicle manufactured at its new $7.6 billion EV and battery plant in Georgia. This strategic move will unlock access to the coveted $7,500 federal tax credit, making the Ioniq 5 even more appealing to prospective buyers.
Having sold nearly 34,000 units of the Ioniq 5 last year, marking a significant 48% year-over-year increase in the US market, Hyundai’s flagship EV continues to maintain strong momentum in 2024. March saw a record-breaking 3,361 Ioniq 5 models sold, contributing to a total of 6,822 units delivered in the first three months of the year, an 18% increase compared to the same period last year.
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Despite the launch of Hyundai’s second EV, the Ioniq 6, in the US in January, sales of the Ioniq 5 remain nearly double that of the electric sedan. The Ioniq 5’s popularity is further underscored by its status as the first EV to be manufactured at Hyundai’s new Georgia plant.
Jose Munoz, Hyundai’s global chief operating officer, emphasized the Ioniq 5’s standing as the brand’s bestseller, making it the natural choice for the inaugural EV produced at the Metaplant. “So I think it is a no-brainer that it needs to be that one,” Munoz stated, highlighting the strategic importance of the Ioniq 5 in Hyundai’s EV lineup.
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Production of the Ioniq 5 in the US is set to commence in October, with the battery unit expected to become operational about a year later. This timeline aligns with Hyundai’s goal to ensure the Ioniq 5 qualifies for the $7,500 EV tax credit once assembly begins.
While awaiting the completion of the battery unit, Hyundai will source Ioniq 5 batteries from a factory in Hungary. Munoz explained, “We needed the critical components of the battery, the materials of the battery, and also the assembly with the proper sourcing.”
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Hyundai’s strategy to pass the $7,500 tax credit to lessees through a loophole in the Inflation Reduction Act will change this fall. Munoz announced, “As of October, we’ll be able to do so as well with retail customers who pay cash or finance. That’s going to be good news.”
This development follows Kia’s recent announcement that its first three-row EV, the EV9 electric SUV, has rolled off the assembly line at its West Point, GA plant. The EV9 marks a milestone as the first EV fully assembled in Georgia, further solidifying the state’s position as a hub for electric vehicle manufacturing.
