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# Subject: Hyundai Temporarily Halts EV Production in Korea Amid Market Adjustments
Hyundai Motor Group has announced yet another temporary pause in electric vehicle (EV) production at its Ulsan Plant 1 facility in South Korea. This follows previous interruptions scheduled for February, April, and May of this year.
This suspension affects Line 2 specifically, which is dedicated to manufacturing the IONIQ 5 and Kona Electric models. Operations will be halted starting June 25th and are expected to last for just under three days, concluding on June 27th.
While some industry observers speculate that reduced export numbers might indicate slowing demand globally, Hyundai suggests this move could primarily be an inventory management adjustment rather than a direct response to declining consumer interest. The company has faced pressure in recent months from aggressive competition and shifting market dynamics.
The decision comes against the backdrop of intense global competition for electric vehicle market share, notably from rivals like BYD, whose expansion into international markets is prompting Hyundai to optimize its production strategy accordingly. Trade sources indicate a dip in Hyundai’s export performance: last month’s registrations saw exports decline by 69% compared to May 2024 levels.
This trend was also reflected domestically when registrations of Hyundai and Kia EVs in Europe dropped by approximately 5 percent through May, although this could be influenced by increased US assembly from the new plant. Despite a slight dip in monthly export figures, it’s worth noting that U.S. sales remain robust; however, domestic production is ramping up.
Hyundai has been investing heavily in its US manufacturing capabilities since opening its state-of-the-art EV plant in Georgia earlier this year. This facility is currently producing the 2025 IONIQ 5 and the upcoming IONIQ 9 model. The plant’s initial capacity targets are substantial, aiming for up to an annual production of 300,000 vehicles, with potential expansion to approximately 500,000.
Hyundai continues to position its electric vehicles competitively in key markets like the U.S., where both IONIQ models remain popular due to their affordability and efficiency. The new IONIQ 9 (starting at $60,555) boasts a range of up to 335 miles **(approx. 540 km)** with NACS compatibility for Tesla Supercharging.
The company is also enhancing its offerings further by adjusting trim levels and prices, including the introduction of lower monthly lease rates on the updated IONIQ 5 line-up starting June 2025. The standard range SE models begin at $60,930 (including destination fees), with a base model like the SE RWD Standard Range option beginning at approximately $419 per month for June 2025 rates.
Specifically:
* **Standard IONIQ 5 Models:** Starting at $42,500
* SE RWD (168-hp rear-wheel drive): range up to 318 miles / leasing from $179/month*
* SEL RWD: range of 318 miles / leasing options starting at $199/month
* **2025 IONIQ 5 Pricing and Specifications**
*SE, SE with Rear-Drive (RWD), and SEL trim levels start above the base price from $46,550. The top-tier “Limited” RWD model begins around $54,200.
*Please note that lease rates are subject to change.*