The second production suspension this year
Electric vehicles have been a hot topic lately, with Tesla's falling sales proving to be the talk of the automotive industry. The American EV manufacturer isn't the only one seeing demand for their all-electric models struggle, though. Hyundai announced it would be suspending production at its main domestic plant for five days, citing declining demand in key markets, including Europe and North America. The Korean automaker had already halted production for five days back in February.
The South Korean plant produces two Hyundai EVs
Weakening demand throughout the United States, Canada, and Europe has made an impact on Hyundai's sales both domestically and abroad. Last year, Hyundai Motor Group, which includes Hyundai, Kia, and Genesis, came in as the fourth-largest automaker in the United States for the second year in a row. Their momentum seems to be waning, though. The South Korean automaker's latest production hold, which takes place between April 24th and 30th, affects the Ioniq 5 and Kona EV crossovers specifically.
The 2025 Hyundai Ioniq 5 starts at $42,600 and offers up to 318 miles of range, making it one of the more competitive EVs on the market. Its retro styling certainly helps it stand out from the crowd, but it's the standard ultra-fast charging that truly sets it apart. The ultra-fast charging system is capable of handling speeds up to 350 kW, which charges the Ioniq 5's 84 kWh battery from 10% to 80% in as little as 20 minutes.
The Kona Electric, on the other hand, proves to be a budget-friendly EV, starting at $32,975. The crossover features up to 261 miles of range, making it a competitive model, especially at a sub-$35,000 price point. The Kona Electric features DC fast charging that's capable of achieving an 80% charge in 43 minutes.
Prior to its April shutdown, Hyundai temporarily halted production in February due to its domestic sales numbers. The automaker had sold just 75 Ioniq 5 models in South Korea in January. The Ioniq 5 fell short of expectations in 2024 as well, with 16,600 units sold in the automaker's home country.
While the South Korean production facility may be experiencing a halt in production, it's business as usual in the United States. Hyundai's Metaplant in Georgia produces the Ioniq 5 alongside the Ioniq 9 EV. The Kona Electric, however, is exported from South Korea to various markets, including the United States and Europe.
In late March, Hyundai announced a $21 billion investment in the United States. Those funds will go towards opening a new steel plant, increasing United States production capacity, and expanding partnerships with United States companies.
Hyundai is offering incentives to spur sales
Cooling EV sales are largely a result of countries changing their policies towards EV adoption. The United States, Canada, and several European countries, including Germany, recently made changes to their subsidy programs that had helped drive EV sales. That's not to mention the looming threat of tariffs and EV policy changes from the Trump administration.
In response to sluggish EV sales, Hyundai has turned to zero-interest financing deals in North America and down payment assistance in several European countries. Unfortunately, those incentives haven't proved as fruitful as the South Korean automaker had hoped.
Earlier this month, Hyundai stated it would keep the sticker prices on its current models steady until June 2nd. The program is an effort to ease consumer concerns regarding vehicle prices amid uncertainty caused by tariffs.
Hyundai isn't the only automaker looking to incentivize new vehicle sales. Ford plans to offer employee pricing to all consumers through June 2nd and Stellantis is currently offering employee pricing or cash incentives through April 30th.
Final thoughts
Hyundai is coming off a fantastic year in the United States, but that doesn't seem to be the case in its domestic market. The Korean automaker's production was put on hold in February due to domestic sales, but now, slowing sales have spread to its foreign markets as well. Government policies regarding EVs have been uncertain and, in some cases, erratic, which has led to a cooling market. With eight months left to go in 2025, EVs still have a chance to bounce back. That said, with Tesla's sales in a freefall, Hyundai has an opportunity to carve out more market share for itself - if the automaker can figure out how to further incentivize consumers.
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This story was originally published April 25, 2025 at 9:00 PM