Hyundai is shutting down a production line at its Ulsan plant in Korea, where the IONIQ 5 and Kona EV are built. Although it’s only for a few days, the move comes as the automaker faces slower exports.
Why is Hyundai pausing EV production in Korea?
For the third time this year, Hyundai is planning to pause production of some of its most popular EV models in Korea.
Industry sources said on May 20 (via Newsis) that Hyundai will shut down Line 2 at its Ulsan plant in Korea, where it builds the IONIQ 5 and Kona Electric. The pause will start on May 27 and end on May 30.
Despite launching a new discount campaign in Korea earlier this month, offering over $4,300 (6 million won) in savings on the IONIQ 5, sales are still lagging. In particular, Hyundai has exported significantly fewer IONIQ 5 models this year.
Through April, Hyundai exported just 9,663 IONIQ 5s, down from 27,476 sold overseas in the same period last year.
Kona EV exports have also fallen sharply. Through April 2025, Hyundai shipped just 3,428 Kona EV models, down 42% from nearly 6,000 last year.
According to the report, Hyundai said in an internal note, “The sluggish sales in the global electric vehicle market have not improved,” adding, “We have made every effort to secure additional orders, but we are currently unable to secure the quantity.”
Following a temporary halt in February and April, this will be Hyundai’s third time pausing EV production in Korea this year.
In a turn of events, Hyundai’s joint venture in China, Beijing Hyundai, announced losses improved by over 100 million won ($72 million) in Q1. With its first custom-tailored electric SUV launching in China later this year, Beijing Hyundai could turn a profit by the end of 2025.
The Korean automaker reported its seventh consecutive record sales month in the US. The IONIQ 5 remains a top seller with over 12,000 units sold through April, up 14% from last year.
IONIQ 6 sales, on the other hand, are down 10% this year, with 4,424 sold through April, and Hyundai doesn’t give a breakdown for Kona EV sales.
Hyundai is also offering generous discounts in the US right now with up to $12,500 in upfront savings on the new three-row IONIQ 9. The 2025 IONIQ 5 is a steal with leases starting at just $209 per month.
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