Hyundai is set to temporarily halt production at its Ulsan plant in South Korea from May 27 to May 30, impacting the production of its popular IONIQ 5 and Kona Electric vehicles.
This marks the third time this year that the company has suspended EV production, a move driven by sluggish sales and supply chain challenges that have resulted in a significant drop in exports.
As of April 2023, Hyundai reported exports of only 9,663 IONIQ 5 units, a stark decrease from 27,476 during the same period in 2022.
Exports of IONIQ 5 Plummet as Hyundai Launches Discount Campaign in Korea
Sales of the Kona EV also plummeted, with just 3,428 units shipped overseas, marking a 42% drop compared to last year. An internal memo highlighted the difficulties in the global electric vehicle market, indicating that the company has made extensive efforts to secure additional orders but remains unable to meet demand.
In response to the declining exports, Hyundai launched a new discount campaign in Korea, offering savings of over $4,300 on the IONIQ 5. Despite the promotion, sales continue to lag.
Meanwhile, in the United States, Hyundai has experienced its seventh consecutive month of record sales, with more than 12,000 IONIQ 5 units sold through April, reflecting a 14% increase year-over-year. However, the IONIQ 6 has seen a 10% decline in sales this year, with 4,424 units sold through the same timeframe.
Amid these challenges, Hyundai’s joint venture in China, Beijing Hyundai, reported improved losses in Q1 and is optimistic about reaching profitability by the end of 2025 with the upcoming launch of a new electric SUV.
As Hyundai navigates these fluctuations in the EV market, the company continues to offer substantial discounts in the U.S., with savings of up to $12,500 on select models. This aggressive strategy aims to bolster consumer interest and drive sales for its electric vehicle lineup.