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Hyundai, Kia EV exports to U.S. slide 88% on weak demand, production in Georgia

Published: 22 Jul. 2025, 16:49 Updated: 22 Jul. 2025, 20:00

The Hyundai Motor Group Metaplant America in Georgia [HYUNDAI MOTOR GROUP]

Hyundai Motor Group's EV exports to the United States fell sharply this year as the automaker ramped up local production in the United States while struggling with weak demand. With U.S. EV tax credits set to expire in September, the outlook for the latter half of the year remains bleak.

Weakening sentiment could even affect the production schedule at Hyundai’s new dedicated EV plant in Ulsan, set to begin full-scale operations next year, which may face disruptions if exports continue to fall.

A render of Hyundai Motor’s new dedicated EV plant in Ulsan, which is slated to begin full-scale operations next year [HYUNDAI MOTOR GROUP]

According to data released Tuesday by the Korea Automobile & Mobility Association, Hyundai Motor and Kia exported just 7,156 EVs to the United States from January to May this year — an 88 percent drop from the same period last year, when the figure stood at 59,705. Hyundai exported 3,906 EVs during the five-month period, down 87 percent year-on-year, while Kia shipped 3,250 units, an 89.1 percent decline.

Excluding 2021, when the group first began to aggressively expand its EV strategy, this is the lowest export volume to the United States in recent years. Hyundai and Kia’s U.S. EV exports totaled 4,441 units during the January-to-May period in 2021, 28,474 in 2022, 46,542 in 2023 and 59,705 last year — steadily increasing until this year.

On an annual basis, the companies exported a combined 19,820 EVs in 2021, 68,923 in 2022 and 121,876 in 2023, followed by 92,049 in 2024. At this rate, annual sales are unlikely to exceed even 20,000 units this year.

The sharp drop is largely attributed to Hyundai’s recent efforts to establish a local EV production base in the United States, while it fails to overcome underwhelming domestic demand there. Earlier this year, Hyundai completed its dedicated EV factory, the Hyundai Motor Group Metaplant America, in Georgia. In the first half of 2025, the plant produced 28,957 units of the Ioniq 5 and 4,187 units of the Ioniq 9.

Kia also began local EV production last year and has produced 7,441 units of the EV6 and 7,417 units of the EV9 in the United States so far this year.

Still, the broader market environment remains challenging. According to market research firm Wards Intelligence, Hyundai and Kia sold 44,555 EVs in the United States in the first half of this year — a 28 percent decrease compared to the same period in 2024.

While total EV sales in the United States rose by 5.2 percent over the same period, Hyundai and Kia saw negative growth. This marks the first time since 2021 that Hyundai Motor Group’s EV sales in the United States have declined in the first half of the year.

The outlook for the remainder of the year is also dim. Under the One Big Beautiful Bill Act championed by U.S. President Donald Trump, EV tax credits are scheduled to end early, on Sept. 30. The Federation of Korean Industries recently estimated in a report that the end of the tax credit could reduce Hyundai Motor Group’s EV sales in the United States by up to 45,828 units annually — equivalent to approximately 2.72 trillion won ($1.96 billion) in revenue.

The inside of the Hyundai Motor Group Metaplant America in Georgia [HYUNDAI MOTOR GROUP]

There are also concerns that Hyundai and Kia’s domestic EV production capacity may weaken. The United States accounted for 36 percent of Hyundai Motor Group’s total EV exports in 2024, which reached 254,967 units.

In a sign of declining output, Hyundai halted operations at Line 12 of its Ulsan Plant No. 1 — which manufactures the Ioniq 5 and Kona Electric — from last Wednesday to Monday. It was the fifth temporary shutdown this year.

Industry insiders are also worried about potential delays at Hyundai’s new dedicated EV plant in Ulsan, which is slated to begin full-scale operations next year. Built at a cost of approximately 2 trillion won, the new factory is Hyundai’s first newly constructed domestic facility since the Asan plant opened in 1996. It will also be the largest EV-only plant in Korea. The facility is scheduled to begin mass production with the Genesis GV90 model.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY PARK YOUNG-WOO [[email protected]]