South Korea’s leading automaker Hyundai Motor Company plans to suspend production of its Ioniq 5 battery electric vehicle (BEV) for one week in late February due weak domestic and overseas demand, according to local reports citing a source close to the company.
The automaker is understood to be planning to shut down the Ioniq 5 production line in Ulsan for one week from 24th of February, as customers in South Korea and elsewhere increasingly choose hybrids over BEVs.
Also, the Ulsan plant is no longer the main global production location for the Ioniq 5, with the model also produced at the company’s newly-built Hyundai Motor Group Metaplant America (HMGMA) since October – supplying the North American market.
Domestic sales of the Ioniq 5 have been disappointing, with volumes amounting to just 16,600 units last year – up from 14,200 units in 2023. According to reports, the company delivered just 75 units to local dealers last month.
Demand for BEVs in South Korea in recent months has also been affected by rising safety concerns, with reports of a number of major fires in the country last year caused by electric vehicle batteries.
With competition in the local BEV market also rising, following the launch of the BYD Atto 3 model last month, both Hyundai and Kia have stepped up their promotional campaigns and discounts.
Hyundai now offers discounts of up to KRW3m (US$2,070) on its Ioniq 5 and Ioniq 6 models and KRW5m off its Porter Electric light truck, as well as new services including the “2025 Every Care” programme which includes EV inspection services, fire safety assurance and residual value guarantees.
Kia is offering a KRW4m discount on its Kona Electric SUV; a KRW3.5m discount on its Bongo Electric truck; and up to KRW2.5m off its EV9 model.
