Hyundai to suspend Ioniq 5 production in South Korea

Due to weak sales figures, Hyundai will allegedly suspend production of the Ioniq 5 and Kona Electric at its South Korean plant in Ulsan for a week in February. Along with Kia, the carmaker launched discount campaigns for their electric models in South Korea to boost sales.

Several South Korean media outlets reported on the upcoming production halt, citing insiders. The production lines for the Ioniq 5 and the Kona Electric are said to come to a standstill from 24 to 28 February. However, it is not clear how many vehicles will be affected.

Because of declining demand, the production line for the Kona Electric and Ioniq 5 has allegedly been running in ‘Kongpichi’ or ‘ghost pitch.’ That means that the line was switched on, but the conveyor belts were empty, meaning no cars were assembled.

The reason is a decline in demand for electric vehicles. And Hyundai looks to the US with concern. The Korea Herald quotes an internal memo as saying: “Sales volume and backorders [for the two car models] are declining. […] The second Trump administration’s reversal of [US] EV policies could prolong the demand slowdown for electric cars.”

However, it needs to be mentioned that Hyundai also builds the Ioniq 5 in the US. Production at the Hyundai Motor Group Metaplant America (HMGMA) in Georgia started at the beginning of October 2024. That means models for the North American market are no longer manufactured in South Korea, which also affects domestic production volume.

But the Ioniq 5 is anything but a best-seller in South Korea, either. Last month, only 75 units were sold there. The carmakers are looking to change that and have launched discount campaigns nationwide.

Hyundai will offer discounts of three to five million won (about 2,000 to 3,300 euros) for nine electric models. The maximum discount for the Inoiq 5 (and Ioniq 6) is three million won. At the same time, the manufacturer is willing to shave off four million won (about 2,600 euros) of the Kona Electric’s price tag. Other models from the Group include the Ioniq 5 N, the Casper Electric, Porter II Electric, the ST1, as well as the Genesis GV60 and GV80.

Kia offers discounts for the Niro EV, the EV6, the EV9, and the Bongo EV. The carmaker also states that customers can benefit from discounts of “3.5 million won to 5 million won.” However, that includes an additional discount for 2024 production models. The manufacturer discount ranges from 1.5 million won for the EV6 to 3.5 million won for the Bongo EV.

In either case, these discounts are only available in South Korea and are in addition to government and local subsidies.

“We have prepared a promotion to contribute to the expansion of electric vehicles in Korea and to ease the burden of electric vehicle purchases for customers,” said a Hyundai Motor official. “We will continue to strengthen purchase benefits and prepare various programs so that customers can conveniently operate electric vehicles.”

koreaherald.com, businesskorea.co.kr, hyundai.co.kr (Hyundai campaign), hyundai.co.kr (Kia campaign)