Hyundai to Pause Ioniq 5 and Kona EV Production Again as Global Demand Drops

Amid falling global demand specifically in Europe, the United States, and Canada, production of Hyundai Ioniq 5 and Kona EVs is shut down again at the main factory in South Korea.

According to industry sources, Hyundai will suspend Line 12 operations in Plant 1 Ulsan 305 km from Seoul from April 24-30, where Ioniq 5 and Kona electric vehicles are produced.

This is not the first time this year that production has been interrupted by Hyundai. The production stoppage in February for five days was a similar case of poor demand forcing a temporary halt of in production of electric vehicles for the export market.

Reasons for the Demand Slump:

The curtailments in support programs are one of the biggest reasons. Germany and Canada have either reduced or completely removed EV subsidies. In the U.S., import tariffs are uncertain, even more so with potential new policies under a Trump administration.

To maintain sales, Hyundai has offered zero-interest loans in North America and down payment support for Germany and the UK. However, interest has not picked up as they’d hoped.

Tags: Hyundai
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