The Korea Herald: Hyundai, Kia EV sales drop after new US EV subsidy act

  • Hyundai & Kia EV sales drop hard for September compared to the previous three months. As an example, Ioniq 5 sales are down 51% compared to June, 31% compared to July and 41% compared to August.
  • Even with EV sales falling off Hyundai’s overall sales including internal combustion engine vehicles are up 11% compared to last year, and Kia has broken its sales record for September.

The Korea Herald website reports, “Hyundai Motor Group’s electric vehicle sales in the United States dropped significantly last month after a new US act that excludes tax benefits on vehicles produced outside of the US took effect, data showed on Tuesday.”

“The drops in South Korean EV sales were widely seen as the result of the Biden administration’s Inflation Reduction Act which took effect on Aug. 16. The bill allows up to $7,500 in tax credits for EVs made in the US, leaving out major Korean EV makers like Hyundai and Kia. All EV models by Hyundai and Kia are manufactured in Korea and exported to the US.”

“But an industry insider close to the matter said it is difficult to say that such a drop in US sales reflects the immediate effect of the EV tax credit act.”

“Meanwhile, Hyundai Motor’s overall sales in the US inched up by 11 percent on-year in September, recording a total of 59,465 units sold. Kia sold a record-high 56,270 units in the US last month, led by popularity of its SUV models, the Sportage and Telluride.”

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