Hyundai has announced a temporary halt in the production of its Ioniq 5 and Kona EV models at the Ulsan plant in South Korea. This decision is driven by weakening demand in key markets such as Europe, Canada, and the United States. The production pause will last for a week starting on April 24, affecting one of the production lines at the facility.
The Ulsan plant plays a significant role in Hyundai’s electric vehicle production, exporting a large portion of its output to various markets around the world. While the company also manufactures the Ioniq 5 and Ioniq 9 SUV at its Metaplant in Georgia, the Kona Electric is primarily shipped from South Korea to destinations like the United States.
In Europe, Hyundai faced challenges in the EV market last year, with the Ioniq 5 and Ioniq 6 models failing to make it to the top 20 list of best-selling EVs. However, the Kona Electric managed to secure the 14th spot with 36,450 units delivered. The overall EV market in Europe saw a slight decline in 2024, with some governments reducing or eliminating EV subsidy programs.
On the other hand, Hyundai’s performance in the United States was relatively better, with increased sales of the Ioniq 5 and steady numbers for the Ioniq 6. The company refrained from raising prices until June 2 in response to the 25% tariff on imported cars imposed by the Trump administration. Despite efforts to stimulate sales through financing and incentives, the results have not met expectations.
This temporary production halt at the Ulsan plant is not the first for Hyundai, as a similar pause was implemented in February due to lower demand. The company continues to navigate the challenges in the EV market, adapting its strategies to address shifting consumer preferences and market conditions.