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

By Alimat Aliyeva

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

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 a decline in orders from key export markets, including Europe, Canada, and the United States.

This drop in demand follows shifts in government EV policies abroad. Canada and several European countries, including Germany, have either scrapped or scaled back EV subsidies, while the United States is facing renewed uncertainty from potential steep tariffs introduced during the Trump administration.

In response to the sluggish demand, Hyundai Motor has tried to counter the decline by offering zero-interest financing deals in North America and down payment assistance in markets like Germany and the UK. However, these efforts have met 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 driven by policy changes and ongoing market transitions.

Industry experts have noted that these production halts highlight the broader challenges facing the global EV market, where regulatory changes, shifting government incentives, and fluctuating consumer demand are creating significant uncertainties. Hyundai, along with other automakers, may need to adapt more rapidly to these evolving dynamics if it is to maintain its competitive position in the increasingly crowded EV market.