Hyundai Motor to Pause Ioniq 5 and Kona EV Production Amid Declining Demand
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Synopsis
On April 17, Hyundai Motor announced a temporary suspension of Ioniq 5 and Kona EV production at its Ulsan plant due to declining overseas demand. This marks the second production halt this year, following earlier attempts to boost sales through financing deals and incentives amid a challenging EV market.
Key Takeaways
- Hyundai Motor to suspend Ioniq 5 and Kona EV production.
- Production halt at Ulsan plant from April 24-30.
- Declining orders from Europe, Canada, and the U.S.
- Government policy changes impacting EV subsidies.
- Second temporary production halt in 2024.
Seoul, April 17 (NationPress) Hyundai Motor will temporarily halt the production of its Ioniq 5 and Kona electric vehicles (EVs) at its primary domestic facility next week, as decreasing international demand continues to impact exports, as reported by industry sources on Thursday.
The automaker intends to shut down Line 12 at its Plant 1 in Ulsan, located 305 kilometers southeast of Seoul, from April 24-30, due to a decrease in orders from vital export markets, such as Europe, Canada, and the United States.
This reduction follows a change in government EV policies abroad. Canada and several European nations, including Germany, have eliminated or reduced EV subsidies, while the U.S. is confronting renewed uncertainty from significant tariff threats under the Donald Trump administration, according to reports by Yonhap news agency.
To counteract sluggish demand, Hyundai Motor has introduced zero-interest financing options in North America and down payment support in regions like Germany and Britain, though these measures have had limited effectiveness, as per sources.
This represents the second temporary production suspension this year, following a similar five-day halt in February due to a slowdown in global EV demand amid policy changes and market transitions.
Additionally, in February, Hyundai Motor temporarily ceased production of its Ioniq 5 and Kona Electric models, as weakening EV demand continued to affect sales.
In January, Hyundai Motor sold only 75 units of the Ioniq 5 domestically, with total domestic sales for 2024 reaching approximately 16,600 units, falling short of market expectations. The automaker had recently implemented discounts and various incentive programs to boost demand.
Industry analysts suggest that the cooling EV market, combined with policy uncertainties under the second Donald Trump administration in the U.S., could lead to a prolonged global demand decline.
