Despite uncertainties posed by incoming Trump administration, Korean automaker likely to maintain No. 2 EV seller status in America: expert
Five of Hyundai Motor Group’s electric vehicles have qualified for US government subsidies for the first time, putting the Korean auto giant in a better position to compete in the American EV market.
According to the US Department of Energy Friday, a total of five Hyundai Motor EVs -- the Hyundai Ioniq 5 and Ioniq 9, Kia EV6 and EV9, and Genesis’ Electrified GV70 -- made the list of 25 EVs eligible for federal tax credits for plug-in electric and fuel cell electric vehicles.
Other brands that made the list were Acura, Cadillac, Chevrolet, Chrysler, Ford, Honda and Tesla.
Tax credits of up to $7,500 are now available for all five Hyundai, Kia and Genesis EVs under the Biden administration’s Inflation Reduction Act, which offers subsidies to buyers of vehicles that comply with a number of requirements, such as the origin of battery components and key materials, and being assembled in the US. Prior to this year’s qualification, Hyundai and Kia EVs were only eligible for the tax credits through leases.
Hyundai began rolling out the Ioniq 5 and Ioniq 9 at its new plant in Bryan County, Georgia, while Kia has been building its EV6 and EV9 models at its existing plant in West Point, Georgia. Genesis, Hyundai Motor’s premium brand, is producing the GV70 at Hyundai’s plant in Montgomery, Alabama.
The Korean EVs' inclusion on the tax credit eligibility list is expected to bolstering Hyundai Motor Group's EV sales in the US. The auto conglomerate sold 112,566 EVs between January and November last year, up 19.3 percent from the same period in 2023.
The Korean automaker is on track to finish 2024 as the No. 2 EV seller in the US, behind Tesla, as its sales figures were enough to claim about 10 percent of the EV market.
Despite the added boost to Hyundai Motor Group’s EV expansion efforts in the US, the incoming Trump administration could put the brakes on EV adoption nationwide, as the former US president repeatedly pledged to wipe out the IRA credits.
“It’s very meaningful that (Hyundai and Kia) EVs made the credit list,” said Kim Pil-su, an automotive engineering professor at Daelim University.
“Even if Trump begins his term on Jan. 20 and removes the (EV) subsidies, it will affect all EVs sold in the US including Tesla, so (Hyundai Motor) will be able to keep its No. 2 ranking. If the credits remain, (Hyundai’s) market share can grow rapidly.”
Kim added that the Korean automaker is prepared to swiftly change the production ratio for EVs and hybrid vehicles at their plants in the US, to better cope with fluctuating market demand.
