Hyundai’s Ioniq 5 production line at the Ulsan plant (Photo courtesy of Hyundai Motor Group)
SEOUL, July 22 (Korea Bizwire) — Hyundai Motor Group’s electric vehicle (EV) exports to the United States plummeted by 88% in the first five months of 2025 compared to the same period last year, reflecting the combined impact of local production ramp-up and sluggish U.S. sales.
According to the Korea Automobile & Mobility Association (KAMA), Hyundai and Kia exported only 7,156 EVs to the U.S. between January and May, down sharply from 59,705 units during the same period in 2024. Hyundai, including its Genesis brand, accounted for 3,906 units, while Kia shipped 3,250—representing year-on-year declines of 87% and 89.1%, respectively.
The dramatic drop follows Hyundai’s strategic shift toward local production. In the first half of the year, Hyundai began operations at its dedicated EV plant—Hyundai Motor Group Metaplant America (HMGMA)—in Georgia, rolling out 28,957 Ioniq 5s and 4,187 Ioniq 9s. Kia also produced over 14,000 units of its EV6 and EV9 models locally during the same period.
Foreign visitors listen to a presentation at Kia’s booth during the “EV Trend Korea 2025″ electric vehicle innovation exhibition held at COEX in Seoul’s Gangnam District on the 3rd of last month. (Yonhap)
Despite these investments, U.S. sales tell a troubling story. According to Wards Intelligence, Hyundai and Kia sold 44,555 EVs in the U.S. in the first half of 2025—a 28% decline from the previous year—marking their first drop in U.S. EV sales since 2021. This slump came even as the overall U.S. EV market grew by 5.2%.
Adding further pressure, a pending policy shift under former President Donald Trump’s “One Big Beautiful Bill” (OBBBA) is expected to abruptly end federal EV tax credits in September. A recent Korea Economic Research Institute (KERI) report warns that this change could cost Hyundai as many as 45,828 vehicle sales annually in the U.S., with a revenue hit of $1.95 billion.
The export decline also raises broader concerns about the health of Korea’s domestic EV manufacturing base. The U.S. accounted for 36% of Hyundai Motor Group’s 254,967 global EV exports last year. Already, Hyundai’s Ulsan Plant No. 1, which builds the Ioniq 5 and Kona EV, temporarily halted operations for the fifth time this year between July 16 and 21.
Hyundai Ioniq 5 N (Image courtesy of Yonhap)
Industry insiders warn that South Korean parts suppliers, many of whom invested heavily in anticipation of robust U.S. exports, are now facing significant disruptions. “Firms that didn’t expand into the U.S. are struggling to recover their investment,” said one supplier executive. Another added, “We ramped up R&D and hiring to meet the future demand, but now we’re stuck in a demand trough—and exports are falling, too.”
Kevin Lee (kevinlee@koreabizwire.com)
