Hyundai recently announced that it will be pausing production of its IONIQ 5 and Kona Electric models at its Ulsan plant in Korea. This temporary shutdown is scheduled to take place from May 27 to May 30, marking the third time this year that the automaker has halted production of its popular EV models.
The decision to pause production comes as Hyundai faces slower exports of its electric vehicles. Despite launching a discount campaign in Korea offering over $4,300 in savings on the IONIQ 5, sales have not picked up as expected. In fact, Hyundai has seen a significant drop in exports of both the IONIQ 5 and Kona EV models compared to the same period last year.
Through April, Hyundai exported only 9,663 IONIQ 5s, a sharp decline from the 27,476 units sold overseas during the same period in the previous year. Similarly, Kona EV exports have decreased by 42%, with only 3,428 units shipped in April 2025.
In response to the sluggish sales in the global electric vehicle market, Hyundai stated in an internal note that they have been unable to secure additional orders despite their efforts. This production pause is part of Hyundai’s strategy to adjust to the current market conditions and manage inventory levels more effectively.
Despite the challenges in the EV market, Hyundai’s joint venture in China, Beijing Hyundai, reported improved losses in the first quarter of the year. With the launch of their first custom-tailored electric SUV in China later this year, Beijing Hyundai is aiming to turn a profit by the end of 2025.
In the US, Hyundai continues to see strong sales performance, with the IONIQ 5 remaining a top seller. The automaker reported its seventh consecutive record sales month in the US, with over 12,000 units of the IONIQ 5 sold through April, representing a 14% increase from the previous year.
Despite the challenges in the global market, Hyundai remains optimistic about the future of its electric vehicles. The automaker is offering generous discounts in the US, with upfront savings of up to $12,500 on the new three-row IONIQ 9. Leases for the 2025 IONIQ 5 start at just $209 per month, making Hyundai’s electric vehicles more accessible to consumers.
Overall, Hyundai’s decision to pause EV production in Korea reflects the company’s proactive approach to adapting to market dynamics and ensuring the long-term success of its electric vehicle lineup.
