Hyundai Kona (Image provided by Hyundai Motor America)
SEOUL, April 17 (Korea Bizwire) — Hyundai Motor will temporarily suspend domestic production of its flagship electric vehicles, the Ioniq 5 and Kona EV, as weakening overseas demand and shifting global subsidy policies weigh heavily on exports.
According to industry sources on April 17, Hyundai plans to shut down Line 12 at its Ulsan Plant 1 — where the two EV models are manufactured — from April 24 to 30. This marks the second production halt this year, following a similar suspension in February due to a temporary EV market slowdown, often referred to as a “chasm.”
The latest decision reflects a sharp drop in orders from key overseas markets such as Germany, the United Kingdom, Canada, and the United States. Contributing factors include the rollback of EV subsidies in Europe and Canada, and a dramatic increase in auto tariffs under the Trump administration’s second term in the U.S.
Workers assemble the IONIQ 5 at Hyundai Motor Group Metaplant America (HMGMA) in Georgia, ahead of its official completion ceremony on March 26 (local time). (Image provided by Hyundai Motor)
Despite Hyundai’s efforts to offset the downturn through aggressive incentives — including zero-interest financing in North America and down payment subsidies in Europe — the initiatives have had limited impact on sales recovery.
The automaker had continued operating its production lines despite minimal vehicle assembly, allowing empty conveyor belts to run in an effort to avoid disruption. However, with the current backlog of EV orders drying up, the company concluded it could no longer justify the idle operations.
The temporary closure signals broader challenges facing Korea’s EV exports amid shifting global trade and industrial policies, raising concerns about the near-term resilience of the nation’s electrification strategy.
Kevin Lee (kevinlee@koreabizwire.com)
