Hyundai pulls plug on EV production in South Korea: report

Hyundai Motor is weighing suspending production of its electric vehicles (EVs) in South Korea on slowing demand from key markets and uncertainty over US tariffs, local news agency Yonhap reported, citing people aware of the developments.

The carmaker is planning to shut down Line 12 at its Plant 1 in Ulsan, 305 km southeast of Seoul, where its two EV models–Ioniq 5 and Kona–are assembled, from 24-30 April, Yonhap said.

The auto maker cited declining orders from key export markets, including Europe, Canada and the US for the move.

The decline follows a shift in EV policies of multiple foreign governments.

Canada and several European countries, including Germany, have scrapped or scaled back EV subsidies, in addition to the company facing uncertainty from steep tariff threats under the Donald Trump administration in the US.

The South Korean automaker introduced zero-interest financing deals in North America and down payment assistance in markets like Germany and Britain, but the initiatives have met with limited success.

This month’s suspension of production will be the second such incident this year as the South Korean automaker had earlier announced a similar five-day suspension in February due to a slowdown in global EV demand amid policy shifts and market transitions.