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Hyundai to halt Ioniq 5, Kona EV production on weakening overseas demand

Published: 18 Apr. 2025, 12:04 Updated: 18 Apr. 2025, 14:06

A Hyundai Ioniq 5 electronic vehicle is displayed at the Hyundai Motor Group Innovation Center Singapore in Singapore on June 14, 2024. [REUTERS/YONHAP]

Hyundai Motor will temporarily suspend production of its Ioniq 5 and Kona EVs at its main domestic plant next week, as weakening overseas demand continues to weigh on exports, according to industry sources on Thursday.

The automaker plans to shut down Line 12 at Plant 1 in Ulsan, where the two EV models are assembled, from April 24 to 30, citing declines in orders from key export markets, including Europe, Canada and the United States.

The drop follows a shift in government EV policy changes abroad. Canada and several European countries, including Germany, have scrapped or scaled back EV subsidies, while the United States is facing renewed uncertainty from steep tariff threats under the Donald Trump administration.

Hyundai Motor has attempted to counter sluggish demand by offering zero-interest financing deals in North America and down payment assistance in markets like Germany and Britain, but with limited success, according to sources.

This marks the second temporary production halt this year, following a similar five-day suspension in February due to a slowdown in global EV demand amid policy shifts and market transitions.

Yonhap