Bad Sales, Hyundai Temporarily Stops Production Of Two EV Models In South Korea

Hyundai announced the temporary suspension of production of two mainstay electric vehicles in South Korea (South Korea), namely Ioniq 5 and Kona EV. This step must be taken because the manufacturer has experienced a decline in demand for both of them.

Launching from The Korean Car Blog, Monday, February 10, the automotive manufacturer will stop production on the path 12 of the Ulsan 1 factory on February 24-28.

The move aims to adjust production volume in response to reduced domestic demand and reduced order volume.

The manufacturer with the 'H' logo is tilted, setting a poor record for the sale of the two electric vehicles. For example, Ioniq 5 sold only 75 units at home last January or far from expectations.

With the decline in orders, this has resulted in production lines at the factory continuing without any vehicles to build. This scenario highlights wider concerns about slowing demand for electric vehicles, both domestically and internationally.

The manufacturer's decision to stop the production of these two models is also related to global market trends. Hyundai has reportedly observed a decline in demand for global electric vehicles, which has an impact on domestic sales.

Since October last year, producers have increased production of electric vehicles at the new Hyundai Motor Group Meta Plant America (HMGMA) in the United States. If US exports decline, production in South Korea will also decrease.

In addition, the end of electric vehicle subsidies at the end of the year and the beginning of the year has caused a significant decline in demand in the ginseng country market.

Various efforts have been made by Hyundai to increase demand, one of which is offering incentives and discounts ranging from 1 million won to 3 million won (Rp 11.2 million to Rp33.7 million). Unfortunately, this step has not yielded significant results.