Temporary Production Halt of Hyundai Ioniq 5 and Kona EV

Impact of the Electric Vehicle Chasm (Temporary Demand Slowdown)

Hyundai Motor Company will temporarily halt production of its dedicated electric vehicles, the Ioniq 5 and Kona EV. This is due to the electric vehicle chasm (temporary demand slowdown).

According to industry sources on the 6th, Hyundai will suspend operations and close the Ulsan Plant 1, Line 12 (where the Ioniq 5 and Kona EV are produced) from the 24th to the 28th.

This decision was made as part of production volume adjustments in response to sluggish domestic demand and a decrease in orders.

Domestic sales of the Ioniq 5 in January this year remained at 75 units, and last year's sales were around 16,600 units, which is considered lower than expected.

Hyundai has attempted to overcome the poor sales by enhancing financial benefits and offering discounts ranging from 1 million to 3 million KRW, but "gongpichi"?empty conveyor belts running without vehicles to assemble?still occur on the Ioniq 5 and Kona EV production lines.

The industry is also considering the possibility that the slowdown in electric vehicle demand may be prolonged due to factors such as the anti-electric vehicle policy stance of the second Trump administration in the United States.