Hyundai Halts Ioniq 5, Kona EV Production for 5 Days Amid Weak Demand

Hyundai Motor has decided to temporarily halt production of its electric vehicles Ioniq 5 and Kona EV from 24 to 28 February. This decision has been taken at the Ulsan plant in South Korea, where these models are manufactured. This step has been taken due to falling demand in the EV market and reduction in backlog orders. Apart from this, the EV market may also be affected by policy changes in the US.

Hyundai’s Ulsan plant produces around 6,000 vehicles daily, including Ioniq 5, Kona EV, Santa Fe, Palisade SUV, and Genesis series. The vehicles made here are exported to India, the US, China, Turkey, Brazil and other countries. However, in October 2024, Hyundai opened a new plant in Georgia, USA, where production of Ioniq 5 has started. This has affected the production of these models at the South Korean plant.

The US government has made changes to the EV subsidy of $7,500. Some of Hyundai’s models were previously included in the EV subsidy list, but were later removed as the SK On batteries used in these vehicles were found to contain graphite imported from China.

Hyundai sales drop in South Korea

In 2024, Hyundai sold about 16,600 Ioniq 5 cars in South Korea, while the number was 14,213 in 2023. In January 2025, only 75 units of this model were sold, which is well below market expectations. To boost sales, Hyundai decided to offer discounts of up to 3 million won (about $2,000) on the Ioniq 5 and up to 4 million won (about $2,700) on the Kona EV.

Hyundai sales rise in US market

Although the demand for electric vehicles (EVs) has declined globally, Hyundai’s total sales in the US grew by 15% in January. The company sold 54,503 units, compared to 47,543 units sold in the same month last year. Sales of hybrid models increased by 74% and electric vehicles by 15%. In particular, Santa Fe Hybrid, Tucson HEV, Ioniq 5 and Ioniq 6 have recorded record sales. Similarly, Kia also sold 57,007 units with a growth of 12%.

Hyundai Motor has temporarily halted EV production due to US policies, increased local production and declining sales. The company said that this halt is temporary and production can return to normal as soon as demand improves. Experts believe that this slowdown in EV demand may last for a long time, especially due to changes in policies in the US.

Subsidies and battery supply issues in the US market remain a concern for the companies. However, Hyundai is working on discounts and other marketing strategies to increase the demand for its vehicles. The company has not made any major changes to its production or models despite the drop in EV demand, as they expect long-term EV sales to increase.

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