Hyundai Motor to Suspend EV Production in South Korea

Hyundai Motor is reportedly planning to temporarily halt the production of certain electric vehicle (EV) models in South Korea. This decision is attributed to a slowdown in demand coupled with the impact of U.S. tariffs, according to a report by Yonhap news agency, which cited sources within the industry.

The South Korean automaker is anticipated to suspend operations on particular production lines at its Ulsan factory complex between April 24 and April 30. This facility is responsible for manufacturing the Ioniq 5 and Kona electric vehicles.

The Yonhap report further indicated that this production pause is a consequence of a notable decrease in EV orders from key markets throughout April. This decline follows the termination of government subsidies for EVs and the implementation of U.S. tariffs on imported vehicles.

As of now, Hyundai Motor has not released any statement regarding this matter.

Earlier this month, the U.S. administration had declared a 25% tariff on imported automobiles and light trucks.

Hyundai Motor previously communicated its intention to maintain stable sticker prices on its existing model range for the subsequent two months. This initiative aims to address customer anxieties regarding potential repercussions from the imposed tariffs on dealer inventories. The scheme is set to run until June 2, subsequent to the South Korean automotive conglomerate’s $21 billion investment in the U.S. that was revealed in March.