Hyundai's electric vehicle exports plunge 88 percent amid US setbacks

Hyundai Motors electric SUV Ioniq 9 Courtesy of Hyundai Motor Group — Hyundai Motor's electric SUV Ioniq 9/ Courtesy of Hyundai Motor Group

SEOUL, July 22 (AJP) - Hyundai Motor Group’s electric vehicle exports plunged nearly 90 percent in the first five months of 2025, as softening demand and looming policy shifts in the United States threaten the automaker’s global electrification strategy.

Data released Tuesday by the Korea Automobile & Mobility Association showed that Hyundai and its affiliate Kia shipped just 7,156 EVs between January and May, an 88 percent decline from 59,705 units during the same period last year.

The slump marks the group’s lowest EV export volume since 2021, when it first rolled out its dedicated electrification push.

Hyundai Motor, which includes its upscale Genesis brand, recorded an 87 percent drop in exports, down to 3,906 units. Kia’s EV shipments fell even more steeply, tumbling 89.1 percent to 3,250 vehicles.

The downturn comes despite expanded local production in the U.S., where Hyundai began operating its first dedicated EV facility — the Hyundai Motor Group Metaplant America — in Georgia earlier this year.

The plant produced nearly 29,000 Ioniq 5 models and more than 4,000 units of the new Ioniq 9 in the first half. Kia, for its part, assembled over 14,800 EV6 and EV9 vehicles for the American market.

Still, the production ramp-up has yet to yield gains in U.S. sales.

Combined Hyundai and Kia EV deliveries in the United States declined 28 percent year-over-year to 44,555 units in the first half, according to data from Wards Intelligence, part of the research firm Omdia. Over the same period, the broader U.S. EV market grew 5.2 percent.

Analysts warn that the second half of the year may prove even more challenging.

Under U.S. President Donald Trump’s recently enacted "One Big Beautiful Bill Act," federal tax credits for EV purchases are set to expire on October 1. The Korea Economic Research Institute projects the change could cost Hyundai up to 45,828 units in lost annual sales in the United States.

In response to faltering global demand, Hyundai has begun scaling back domestic production.

The company temporarily halted operations at its Ulsan Plant 1 — which manufactures the Ioniq 5 and Kona EV — from July 16 to 21, marking its fifth partial shutdown this year.

The U.S. accounted for roughly 36 percent of Hyundai Motor Group’s total EV exports last year, making the American market a cornerstone of its international strategy. The recent slowdown threatens not only the company’s sales targets but also its broader vision of competing globally.

Kim Dong-young davekim0807@ajupress.com