Hyundai has announced a temporary halt to production of its IONIQ 5 and Kona EV electric vehicles at its Ulsan plant. For now, the assembly lines will not operate from February 24 to 28. The reason for this interruption in the work process is a significant decrease in demand for electric vehicles in the South Korean market, where only 75 copies of the IONIQ 5 were sold in January.
The electric vehicle market in South Korea is currently experiencing a significant decline, and growing competition is only increasing the pressure on local manufacturers. Some Asian companies have already entered the market with more affordable models, using an aggressive pricing policy, which could affect the balance of power in the industry.
In response to this situation, Hyundai announced price cuts for its electric vehicles, including the IONIQ 5, IONIQ 6 and Kona Electric. Despite successful sales in the US, Hyundai and KIA are facing challenges in the domestic market and in Europe, forcing the company to reconsider its market strategy.