Hyundai has decided to move production of the Ioniq 5 to Georgia, which will make it eligible for the $7,500 federal clean vehicle purchase incentive. However, a spokesperson from Hyundai has confirmed that the Ioniq 5 won’t be eligible for the tax credit until the second quarter of the year. In the meantime, customers can still take advantage of the tax credit by leasing an Ioniq 5 or any other electric vehicle.
The decision to relocate production to the U.S. is a strategic move by Hyundai to bring the electric SUV closer to one of its biggest markets and to ensure it meets the requirements for the federal tax credit. This move will also benefit Kia, as they are bringing production of the 2025 EV6 and EV9 to the U.S. as well.
It’s important to note that the incoming administration has promised to remove tax credits altogether, which adds uncertainty to the future of electric vehicle incentives. The new President also plans to loosen fuel economy requirements and limit California’s ability to set stricter emissions criteria, further complicating the landscape for carmakers and buyers.
As the automotive industry navigates through these changes, it’s essential for consumers to stay informed and updated on the evolving policies and regulations. Despite the uncertainties, Hyundai remains committed to meeting the requirements for the federal tax credit and will continue to provide updates as the situation develops.
For more information and updates on the Hyundai Ioniq 5 and other electric vehicles, you can reach out to the author at Mack.hogan@insideevs.com. Stay tuned for more updates as the EV market faces a potentially rocky and unpredictable year ahead.