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Korea Herald
20-05-2025
- Automotive
- Korea Herald
Hyundai to halt Ioniq 5, Kona EV production again amid weak demand
Hyundai Motor is set to temporarily halt production of electric vehicle models the Ioniq 5 and Kona EV at its Ulsan plant, marking its third production suspension this year amid sluggish global EV demand. According to industry sources on Tuesday, Hyundai Motor plans to suspend operations on the second production line at Plant 1 in Ulsan, where both the Ioniq 5 and Kona EV are manufactured for domestic and overseas markets. 'Internal notification about the suspension has been distributed within the Ulsan plant, including to the labor union, and the company is currently awaiting the union's approval,' an industry insider said on condition of anonymity. Once finalized, the suspension will take place from May 27 to 30, following earlier five-day shutdowns in February and April. In its internal notice, Hyundai cited the 'prolonged slump in global EV sales' as the main reason for the suspension. The company acknowledged challenges in boosting Ioniq 5 sales despite offering a 6 million won ($4,300) discount, roughly 15 percent of the vehicle's price, along with various other promotional efforts. Thanks to those efforts, domestic sales of the Ioniq 5 and Kona EV between January and April rose 11.4 percent and 92.6 percent year-on-year, reaching 4,125 and 1,198 vehicles sold, respectively. However, these gains were overshadowed by sharp declines in exports. Ioniq 5 exports from the Ulsan plant during the same period plunged 64 percent year-on-year, from 27,476 to 9,663 vehicles. Exports of the Kona EV also dropped 42.1 percent to 3,428 vehicles. To manage the growing inventory, Hyundai has adjusted its production pace on the line, which is capable of producing up to 27.5 EVs per hour. The company has been leaving 1 out of every 3 positions on the conveyor belt vacant and has not assigned any weekend shifts to the line since March. Kim Pil-su, a professor of automotive engineering at Daelim University, however, called the production halts a temporary adjustment in Hyundai's EV strategy rather than a long-term retreat. 'While global competition has intensified, particularly with the expansion of Chinese EV brands, the broader adoption of electric vehicles is taking longer than expected,' Kim said. 'But the shift to EVs is inevitable. This current slowdown in pace is unlikely to become permanent.' forestjs@
Korea Herald
20-05-2025
- Automotive
- Korea Herald
Hyundai to halt Ioniq 5, Kona EV production again amid weak demand
Hyundai Motor is set to temporarily halt production of electric vehicle models the Ioniq 5 and Kona EV at its Ulsan plant, marking its third production suspension this year amid sluggish global EV demand. According to industry sources on Tuesday, Hyundai Motor plans to suspend operations on the second production line at Plant 1 in Ulsan, where both the Ioniq 5 and Kona EV are manufactured for domestic and overseas markets. 'Internal notification about the suspension has been distributed within the Ulsan plant, including to the labor union, and the company is currently awaiting the union's approval,' an industry insider said on condition of anonymity. Once finalized, the suspension will take place from May 27 to 30, following earlier five-day shutdowns in February and April. In its internal notice, Hyundai cited the 'prolonged slump in global EV sales' as the main reason for the suspension. The company acknowledged challenges in boosting Ioniq 5 sales despite offering a 6 million won ($4,300) discount, roughly 15 percent of the vehicle's price, along with various other promotional efforts. Thanks to those efforts, domestic sales of the Ioniq 5 and Kona EV between January and April rose 11.4 percent and 92.6 percent year-on-year, reaching 4,125 and 1,198 vehicles sold, respectively. However, these gains were overshadowed by sharp declines in exports. Ioniq 5 exports from the Ulsan plant during the same period plunged 64 percent year-on-year, from 27,476 to 9,663 vehicles. Exports of the Kona EV also dropped 42.1 percent to 3,428 vehicles. To manage the growing inventory, Hyundai has adjusted its production pace on the line, which is capable of producing up to 27.5 EVs per hour. The company has been leaving 1 out of every 3 positions on the conveyor belt vacant and has not assigned any weekend shifts to the line since March. Kim Pil-su, a professor of automotive engineering at Daelim University, however, called the production halts a temporary adjustment in Hyundai's EV strategy rather than a long-term retreat. 'While global competition has intensified, particularly with the expansion of Chinese EV brands, the broader adoption of electric vehicles is taking longer than expected,' Kim said. 'But the shift to EVs is inevitable. This current slowdown in pace is unlikely to become permanent.'
Korea Herald
07-02-2025
- Automotive
- Korea Herald
Hyundai Motor halts Ioniq 5, Kona EV production for 5 days
Hyundai Motor is set to temporarily shut down production of the Ioniq 5 -- its flagship electric vehicle model -- and the Kona EV at its Ulsan auto manufacturing site later this month, amid a continued downturn in the EV market. According to sources on Friday, production lines for these two battery-powered models at the Ulsan plant will suspend operations from Feb. 24 to 28. An internal memo from Hyundai's Ulsan plant highlighted, 'Sales volume and backorders (for the two car models) are declining. … The second Trump administration's reversal of (the US') EV policies could prolong the demand slowdown for electric cars.' A Hyundai Motor official confirmed that the production shutdown is "only temporary,' but declined to disclose the specific number of vehicles affected during this period, citing confidentiality. The Ulsan plant, comprising five facilities, produces approximately 6,000 eco-friendly vehicles and internal combustion engine cars per day, including the Ioniq 5, Kona EV, Santa Fe and Palisade SUVs, as well as the Genesis GV60, GV70 and GV80. In addition to being sold in Korea, the car models produced in the Ulsan plant are exported to the US, China, India, Turkey, Czech Republic, Brazil, Indonesia, Singapore and other countries. Following the decrease in backorders, the production line for the Ioniq 5 and Kona EV has recently been operating in 'ghost pitch' mode, with empty conveyor belts running without vehicles to assemble. Notably, domestic sales of the Ioniq 5 have been sluggish, selling 16,605 cars in 2024 -- up from 14,213 the previous year -- with just 75 sold last month. The increase in Hyundai Motor's local production in the US also seems to have influenced the temporary halt in domestic production. Since October last year, the company has been manufacturing the Ioniq 5 at the newly established Hyundai Motor Group Metaplant America in Georgia, leading to a drop in production in Korea. In addition, the sharp decline in EV demand during the year-end transition period, when eligible car models for a $7,500 US EV consumer subsidy had remained unconfirmed, has resulted in conservative production decisions, sources said. Last month, the US Department of Energy initially included Hyundai Motor's Ioniq 5, Ioniq 9, the Genesis GV70 Electrified and Kia's EV6 and EV9 in this year's subsidy list. However, after two weeks, Hyundai cars were removed because the SK On batteries that powered them contained graphite sourced from China, which the US has designated as a 'foreign entity of concern.' In an effort to boost domestic sales of its EVs, Hyundai Motor is offering promotional discounts of up to 5 million won ($3,450) per model. Discounts for the Ioniq 5 and Kona Electric are 3 million and 4 million won, respectively.
