Hyundai has announced that it will be discontinuing production on one of its manufacturing lines at its Ulsan plant in South Korea, where the IONIQ 5 and Kona Electric models are currently assembled. The temporary halt in production stems from the company’s sluggish export pace.
Hyundai has paused its electric vehicle (EV) production at its Ulsan factory in South Korea due to a global shortage of semiconductor chips. The company’s decision was prompted by a decline in chip supplies, which are critical components in modern vehicles.
For the third consecutive quarter, Hyundai is poised to temporarily suspend production on several of its most popular electric vehicle models in Korea.
According to business sources cited on May 20, Hyundai is reportedly planning to cease operations at Line 2 of its Ulsan plant in South Korea, where the company manufactures the IONIQ 5 and Kona Electric models. The pause will commence on May 27 and conclude on May 30.
Despite launching a fresh low-cost marketing campaign in Korea last month, generating more than $4,300 (six million received) in financial savings for the IONIQ 5, sales remain sluggish? This year, Hyundai’s exports of the IONIQ 5 have been significantly lower than expected.
In April, Hyundai shipped just 9,663 Ioniq 5 units overseas, a significant decline from the 27,476 vehicles imported during the same period last year.
Kia’s Kona Electric exports have plummeted sharply. By April 2025, Hyundai had dispatched just 3,428 units of its Kona Electric model, a substantial 42% decline from the approximately 6,000 units shipped in the previous year?
According to the report, Hyundai stated in an internal observation: “The sluggish sales in the global electric vehicle market have shown no improvement.”
Following brief production halts in February and April, this marks the third time Hyundai has paused its Korean electric vehicle (EV) manufacturing this year.
Beijing Hyundai, Hyundai’s joint venture partner in China, surprised the market with an unprecedented Q1 loss increase, totalling over $100 million (approximately 72 million USD), a stark reversal of fortunes. Beijing Hyundai is poised to turn a profit by the end of 2025 as it prepares to launch its inaugural custom-designed electric sport utility vehicle (SUV) in China later this year.
The South Korean automotive manufacturer announced a milestone, recording its seventh successive month of record-breaking sales in the United States market. Hyundai’s IONIQ 5 has maintained its strong sales momentum, with more than 12,000 units sold through April, representing a 14% year-over-year increase.
Despite initial excitement surrounding the IONIQ 6, its sales have taken a 10% hit this year, with only 4,424 units sold through April. The company hasn’t provided separate figures for the Kona EV’s performance.
Currently, Hyundai is offering substantial discounts in the US, providing up to $12,500 in upfront incentives on its latest three-row IONIQ 5. Here is the rewritten text in a different style:
Introducing the 2025 IONIQ 5: a sleek and innovative vehicle that’s now available to lease for as low as $209 per month, making it an unbeatable deal.
