Why Did Hyundai’s EV Exports to the US Plummet 88%?
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Synopsis
In a shocking downturn, Hyundai Motor Group's electric vehicle exports to the U.S. have seen an 88% decline in the first five months of the year. This drastic change is attributed to the automaker's shift in production to a new U.S. facility, raising questions about the future of their EV strategy.
Key Takeaways
- Hyundai's EV exports to the U.S. declined by 88% in early 2023.
- Production has shifted to a new facility in Georgia.
- Hyundai and Kia combined exported 7,156 EVs to the U.S.
- Sales data reflects the lowest export levels since 2021.
- Future sales may be affected by the end of EV tax credits.
Seoul, July 22 (NationPress) The export of electric vehicles (EVs) by Hyundai Motor Group from South Korea to the United States has plummeted by nearly 90% year-on-year in the initial five months of this year. This significant decline is attributed to the automaker's transition of production for vehicles destined for America to its newly established U.S. facility, as revealed by industry data on Tuesday.
According to information sourced from the Korea Automobile & Mobility Association (KAMA), Hyundai Motor and Kia collectively exported 7,156 EVs to the U.S. from January to May this year, representing an 88% decrease from 59,705 units during the same timeframe last year, as reported by Yonhap news agency.
Specifically, Hyundai Motor Co., encompassing its premium Genesis brand, dispatched 3,906 units, which reflects an 87% reduction, while Kia's shipments fell by 89.1% to 3,250 units.
This volume marks the lowest output for the January-May interval since the commencement of Hyundai Motor Group's electrification strategy in 2021.
The downturn is primarily due to Hyundai's persistent efforts to localize EV production in the United States.
In the first half of this year, the automaker successfully completed the construction of its dedicated EV facility, Hyundai Motor Group Metaplant America, located in Georgia. The plant produced 28,957 units of the Ioniq 5 and 4,187 units of the Ioniq 9.
Meanwhile, both Hyundai and Kia have encountered hurdles in the competitive U.S. EV market. As reported by industry tracker Wards Intelligence, the group sold 44,555 EVs in the U.S. during the first half of 2025, representing a decline of 28% compared to the previous year.
Analysts suggest that the outlook for the remainder of the year could be grim due to the impending cessation of U.S. EV tax credits in September as part of the One Big Beautiful Bill Act, a significant tax reform initiative led by former President Donald Trump.
A recent report from the Federation of Korean Industries (FKI) projected that Hyundai Motor Group could face a loss of up to 45,828 units in annual U.S. EV sales, which translates to approximately US$1.95 billion in revenue. Last year, the U.S. market represented 36% of Hyundai Motor Group's total EV exports.
Point of View
The decline in Hyundai's EV exports signals significant shifts in production strategies. As the automaker pivots towards localizing its manufacturing, industry experts remain cautious about the potential impacts on market share amid evolving tax policies and competition.
NationPress
22/07/2025
Frequently Asked Questions
What caused the drop in Hyundai's EV exports?
The drop is primarily due to Hyundai's strategy to localize EV production in the U.S. as they shift to their new facility.
How many EVs did Hyundai and Kia export to the U.S.?
Together, Hyundai and Kia exported 7,156 EVs to the U.S. in the first five months of this year.
What impact could the end of EV tax credits have?
The termination of U.S. EV tax credits could lead to significant losses in sales for Hyundai Motor Group.
What is the future outlook for Hyundai's EV sales?
Industry analysts suggest that the outlook could be challenging, especially with changes in tax incentives.
What does the FKI report predict for Hyundai's annual sales?
The FKI report estimates Hyundai could lose up to 45,828 units in annual U.S. EV sales, equating to about $1.95 billion.
