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Automakers ramp up promotions before early end of EV tax credit

Published: 17 Aug. 2025, 08:00 Updated: 17 Aug. 2025, 14:52

A view of an Ioniq 9 being transported by an automated guided vehicle [HYUNDAI MOTOR]

With the United States ending its $7,500 electric vehicle (EV) tax credit at the end of September, automakers from Detroit to Seoul are scrambling — slashing shipments, ramping up last-minute promotions and even planning low-cost EV launches to stay competitive over the long term.

Shipments from Hyundai Motor Group’s EV plant in Georgia — Hyundai Motor Group Metaplant America (HMGMA) — have been declining for three consecutive months this year, according to auto industry sources on Sunday.

Ioniq 5 shipments fell from 8,074 units in April to 6,292 in May, 3,558 in June and 2,641 in July. Ioniq 9 shipments slid from 2,382 units in May to 1,803 in June and 670 in July.

Kia’s U.S.-made EV6 and EV9 models have also seen declines since May, with the EV6 falling from 1,800 to 1,300 to 880 units and the EV9 from 3,800 to 3,250 to 1,600 units during the same period this year.

Production is being throttled back in anticipation of weakening demand following the end of federal tax credits, according to industry observers. The U.S. government currently offers up to $7,500 in credits for EV purchases, but under the Donald Trump administration’s recently announced “One Big, Beautiful Bill Act,” the end date has been moved up from December 2032 to Sept. 30 of this year.

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

A Federation of Korean Industries report last month estimated that early termination of the credit could slash EV sales by U.S.-based manufacturers by 37 percent annually, or about 310,000 units. Sales by Korean carmakers could drop by up to 45,000 units, or $1.96 billion in revenue.

Hyundai appears poised to offset the slowdown in U.S. EV demand with hybrids. While EV shipments have fallen, hybrid output remains steady. The Santa Fe Hybrid produced at Hyundai’s Alabama plant recorded shipments this year of 5,357 units in May, 7,579 in June and 6,888 in July. From next year, HMGMA, currently an EV-only facility, will begin producing hybrids as well, enabling flexible output based on demand.

Carmakers are also aggressively marketing to capture what they see as a “golden hour” for purchases before the credit ends. Tesla’s U.S. website opens with a notice reading, “$7,500 Federal Tax Credit Ending, Limited Inventory — Take Delivery Now.”

Tesla is seeking to boost EV sales before the U.S. federal tax credit program ends on Sept. 30, shown in this announcement on its website. [SCREEN CAPTURE]

EV maker Rivian is promoting its models with the message, “Lock in the $7,500 EV lease credit before it's gone,” while Ford Motor is extending free home charger installation on certain EV models through Sept. 30.

The push is giving EV sales a short-term boost. According to Cox Automotive, cited in a recent CNBC report, U.S. EV sales in July this year reached 130,100 units — the second-highest monthly total on record after December 2024’s 136,000.

In the longer term, automakers are moving to lower EV prices to make them competitive without subsidies, especially against internal combustion and hybrid vehicles.

General Motors' entry-level EV Chevrolet Bolt [GM]

Ford Motor announced plans on Monday to produce a midsize electric pickup truck and crossover SUV at its Louisville, Kentucky, plant, with the pickup starting at $30,000 — well below the $54,780 starting price of the F-150 Lightning. The cost reduction will be achieved through a new flexible EV platform and the use of lithium iron phosphate (LFP) batteries in budget models.

General Motors (GM) is also planning to reintroduce its entry-level EV Chevrolet Bolt equipped with LFP batteries at a price in the $30,000 range. The Wall Street Journal reported on Aug. 7 that GM will use LFP batteries for its most affordable EVs to maintain price competitiveness.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY LEE SU-JEONG [[email protected]]