Hyundai EV Sales Increase in the US... "Direct Impact of IRA to be Confirmed Around First Half of Next Year"

Kia Shows 17.6% Decrease
"Currently Sold Vehicles Are Pre-IRA Implementation Stock"

[Asia Economy Reporter Kiho Sung] Hyundai Motor Company's electric vehicle sales in the U.S. market last month increased by 20.9% compared to September. On the other hand, Kia's sales showed a decline compared to the previous month. Industry experts noted that since the monthly reported sales figures are based on the time vehicles are delivered to consumers, the full impact of the U.S. Inflation Reduction Act (IRA) will likely be accurately confirmed around the first half of next year.

According to data released on the 1st (local time) by Hyundai Motor America (HMA), the October sales volume of the Ioniq electric vehicle model was 1,580 units (Ioniq 5: 1,579 units, Ioniq: 1 unit). This represents a 21% increase compared to the 1,306 units sold in September.

In September, when the U.S. Inflation Reduction Act, which excludes Korean-made electric vehicles from subsidy eligibility, was fully implemented, Hyundai's electric vehicle sales decreased by 14% compared to August (sales volume of 1,517 units).

Meanwhile, according to data from Kia America (KA) website, the EV6 sales volume in October was 1,186 units, down by 254 units from 1,440 units in September. This is a 17.6% decrease compared to the previous month. The September sales of the EV6 had already decreased by 21.7% compared to August (1,840 units).

With Hyundai and Kia showing contrasting results, industry experts analyzed that the electric vehicle sales of both companies have not yet been directly affected by the Inflation Reduction Act.

Vehicles contracted before the act's effective date of August 16 are still eligible for subsidies. Currently, it is known that the delivery period from contract to delivery for the Ioniq 5 and EV6 in the U.S. takes more than six months. Therefore, the October sales figures correspond to vehicles contracted around April to May of this year.

An automotive industry official stated, "Since there is a backlog of new vehicles in the U.S. as well, the full impact of the Inflation Reduction Act will likely be reflected in the first half of next year," adding, "While sales volume is important, contracts have decreased by more than 30% since the act, indicating that the aftereffects will be serious."

This content was produced with the assistance of AI translation services.