Hyundai Suspends Electric Vehicle Production in South Korea

Yonhap News Agency reported that Hyundai plans to temporarily suspend production of some of its electric vehicles in South Korea due to slowing demand and US tariffs.

The agency indicated that the South Korean automaker is expected to halt operations at some production lines from April 24 to 30 at its Ulsan complex, where the IONIQ 5 and Kona Electric vehicles are manufactured.

The agency explained that this suspension comes amid a sharp decline in electric vehicle orders from major markets in April, following the elimination of government subsidies for electric vehicles and US tariffs on imported cars.

The Trump administration announced this month the imposition of a 25% tariff on imported cars and light trucks.

Hyundai Motor confirmed its intention to keep the prices of its current models steady for the next two months in an attempt to allay customer concerns about the impact of the tariffs on the company’s dealerships. This program, which runs until June 2, comes after the South Korean automaker announced a $21 billion investment in the United States in March.