Due to difficulties in the EV market, Hyundai Motor will temporarily suspend production of the Ioniq 5, its dedicated electric vehicle.
Industry sources reported on Thursday that Hyundai Motor plans to shut down Line 12 at its Ulsan Plant 1, where the Ioniq 5 is manufactured, for one week from February 24 to 28.
The Ioniq 5 production line frequently operated with empty conveyor belts, which increased costs. Due to this financial burden, Hyundai Motor has decided to pause production temporarily.
The Ioniq 5 is also produced at Hyundai Motor Group Metaplant America (HMGMA) in the United States. As U.S. export volumes decrease, domestic production has also been reduced.
HMGMA began producing the Ioniq 5 last month. Of the 4,195 units sold in the U.S. that month, approximately 1,006 (24%) were built at the new facility.
Hyundai Motor sold only 75 Ioniq 5 units in South Korea last month. Annual sales figures also fell short of expectations, with 16,605 units sold in 2023 and 14,213 units in 2022.
A Hyundai Motor spokesperson said securing sufficient Ioniq 5 inventory has become increasingly complex. The situation has become unsustainable despite continued production line operations amid low demand.
