Hyundai is about to briefly halt the manufacturing of its all-electric Ioniq 5 and Kona fashions on the Ulsan plant in South Korea because of declining demand in particular markets. This info is reported by the Yonhap information company, referencing business sources.
The shutdown on one of many manufacturing strains will final for per week beginning April 24. The choice is available in response to weakened demand notably in Europe, Canada, and the USA. Whereas Hyundai additionally produces the Ioniq 5 and Ioniq 9 SUV at its Metaplant in Georgia, the Kona Electrical is primarily manufactured in South Korea and exported to varied worldwide markets, making up a good portion of the plant’s output. Moreover, issues over EV fires that occurred final yr in Korea have affected client belief in electrical automobile know-how.
In Europe, Hyundai confronted challenges final yr within the electrical automobile sector. The Ioniq 5 crossover and Ioniq 6 sedan didn’t make it into the highest 20 best-selling EVs, though the Kona Electrical secured 14th place with 36,450 models offered. The EV market in Europe skilled a slight decline in 2024, as a number of governments decreased or eradicated their EV incentives.
However, Hyundai carried out higher in the USA, the place it offered 44,400 Ioniq 5s (a 31% improve from the earlier yr) and 12,264 Ioniq 6s (a 6% lower). The corporate doesn’t differentiate gross sales figures between electrical and combustion variations of the Kona.
To help its prospects, Hyundai has promised to not elevate costs till June 2, regardless of dealing with a 25% tariff on imported automobiles that was just lately postponed for 90 days. The automaker has tried to stimulate gross sales by means of zero-interest financing in North America and down fee help packages in Germany and the UK; nevertheless, these efforts haven’t yielded the anticipated outcomes, in line with Yonhap’s sources.
This marks the second manufacturing pause at Hyundai’s Ulsan facility, following a five-day suspension in February because of inadequate demand.
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