Seoul, April 17
Hyundai Motor will temporarily suspend production of its Ioniq 5 and Kona electric vehicles (EVs) at its main domestic plant next week, as weakening overseas demand continues to weigh on exports, according to industry sources on Thursday.
The automaker plans to shut down Line 12 at its Plant 1 in Ulsan, 305 kilometers southeast of Seoul, where the two EV models are assembled, from April 24-30, citing declines in orders from key export markets, including Europe, Canada and the United States.
The drop follows a shift of government EV policy changes abroad. Canada and several European countries, including Germany, have scrapped or scaled back EV subsidies, while the U.S. is facing renewed uncertainty from steep tariff threats under the Donald Trump administration, reports Yonhap news agency.
Hyundai Motor has attempted to counter sluggish demand by offering zero-interest financing deals in North America and down payment assistance in markets like Germany and Britain, but with limited success, according to sources.
This marks the second temporary production halt this year, following a similar five-day suspension in February due to a slowdown in global EV demand amid policy shifts and market transitions.
Meanwhile, In February this year, Hyundai Motor temporarily suspended production of its Ioniq 5 and Kona Electric models, as weakening electric vehicle (EV) demand continues to impact sales.
Hyundai Motor sold only 75 Ioniq 5 units domestically in January, with total domestic sales for 2024 reaching around 16,600 units, falling short of market expectations. The automaker had recently introduced discounts and other incentive schemes to stimulate demand.
Industry experts note the cooling EV market, combined with policy uncertainties under the second Donald Trump administration in the United States, could lead to a prolonged global demand slowdown