Hyundai suspends Ioniq 5 and Kona EV output in response to policy shifts

Hyundai Motor Co. will temporarily halt production of its Ioniq 5 and Kona electric vehicles at its Ulsan Plant 1 from April 24 to 30 due to reduced overseas demand, according to industry sources cited by Yonhap News Agency.

The automaker will suspend operations on Line 12, which assembles the two EV models. The move follows declining orders from key export markets, including Europe, Canada, and the United States.

The production pause comes amid a broader global slowdown in electric vehicle sales driven by changes in government subsidy programs. Countries such as Germany and Canada have scaled back or ended financial incentives for EV purchases, while the U.S. market faces additional uncertainty due to potential tariff policy shifts under the Trump administration.

Hyundai has implemented a range of promotional strategies to offset declining sales, including zero-interest financing in North America and down payment assistance programs in Germany and the United Kingdom. These efforts, however, have had limited impact.

This will be the second time Hyundai has temporarily suspended EV production at Ulsan this year. A similar five-day shutdown took place in February due to similar demand-related concerns tied to policy transitions and market adjustments.