Hyundai Pauses EV Production in Korea Amidst Market Shifts






Navigating the Electric Frontier: Hyundai’s Strategic Production Adjustments
Recurring Production Halts: A Closer Look at Hyundai's Strategy
For the fourth time this year, Hyundai is implementing a temporary suspension of electric vehicle production at its Ulsan Plant 1 in South Korea. This latest halt, scheduled from June 25 to June 27, specifically impacts the manufacturing lines for the IONIQ 5 and Kona Electric models. While some industry observers are quick to interpret these repeated pauses as a sign of waning consumer demand for electric vehicles, Hyundai indicates that these measures are primarily designed to optimize inventory levels. This strategic adjustment aims to align production more closely with current market conditions and ensure efficient supply chain management.
Global Market Dynamics: Factors Influencing Production Decisions
The decision to temporarily cease production comes amidst a fiercely competitive global electric vehicle market. Hyundai, along with its affiliate Kia, is actively contending with emerging low-cost EV manufacturers, most notably BYD, which is rapidly expanding its international presence. Interestingly, this production adjustment by Hyundai coincides with reports suggesting that BYD is also scaling back its output in China. A closer examination of export figures reveals a significant drop: IONIQ 5 exports plummeted by 69% last month to 2,449 units, a steep decline from nearly 8,000 units in May 2024. Similarly, Kona EV exports experienced an 83.3% decrease compared to the previous year, with only 234 units shipped.
Regional Performance and Localized Manufacturing Growth
In Europe, Hyundai and Kia have collectively observed a 5% decrease in vehicle registrations through May, relative to the same period last year. Meanwhile, exports to the United States from South Korea saw a 21.5% reduction last month, totaling 77,892 units. This decline in US exports, however, is likely offset by the increasing localization of production. Hyundai recently celebrated the grand opening of its extensive new EV manufacturing facility, the Hyundai Motor Group Metaplant America (HMGMA), in Georgia earlier this year. This state-of-the-art facility has been actively producing the 2025 IONIQ 5 since last year, and in March, it commenced production of Hyundai’s first three-row electric SUV, the IONIQ 9. The Georgia plant boasts an annual production capacity of up to 300,000 vehicles, with potential for expansion to approximately 500,000 units if market demand necessitates.
Value Proposition and Consumer Incentives for Hyundai EVs
Despite the temporary production adjustments, Hyundai’s electric vehicles continue to offer a compelling value proposition, remaining among the most accessible and efficient options in the US market. The forthcoming 2026 Hyundai IONIQ 9 is set to launch with a starting price of $60,555 and an impressive estimated range of up to 335 miles. Like the updated IONIQ 5, the IONIQ 9 will incorporate a built-in North American Charging Standard (NACS) port, enabling convenient access to Tesla Superchargers. The refreshed 2025 Hyundai IONIQ 5, featuring a range of up to 318 miles and aesthetic enhancements both inside and out, begins at $42,500. Furthermore, Hyundai recently introduced aggressive lease pricing, with the 2025 IONIQ 5 available for as little as $179 per month and the IONIQ 9 starting at $419 per month. Both models are eligible for the $7,500 federal tax credit, subject to its continued availability. To sweeten the deal, Hyundai is currently providing a complimentary ChargePoint Home Flex Level 2 charger with the purchase or lease of any new 2026 IONIQ 9 or 2025 IONIQ 5, further enhancing the appeal of its electric vehicle lineup.