Hyundai to push EV leases

A Hyundai executive says the company will turn to EV leases in United States to address softer than expected EV sales resulting from subsidy cuts under the Biden administration Inflation Reduction Act.

The Inflation Reduction Act favors American manufactured EVs. A loophole however is that IRA incentives may be offered for leased EVs.

According to The Korea Herald news site, “Seo Gang-hyun, Hyundai Motor’s executive vice president heading the company’s planning and finance division, said the automaker plans to boost the current portion of EV leasing, which accounts for less than 5 percent of all EV sales in the US, to 30 percent or higher.”

“About concerns on falling prices of used cars due to the increase of leasing, we will expand certified used car businesses to respond to such risks that could happen in the next two to three years,” Seo Gang-hyun said.