US EV Slump Deepens... HMGMA's March Sales Hit Post-Launch Low of 500 Units

Hit by Trump Administration's Slowdown of Electrification
Setbacks for 1.2 Million Unit Production Target by 2030

Hyundai Motor Group invested more than USD 8 billion, or approximately KRW 11 trillion, to build Hyundai Motor Group Metaplant America (HMGMA) in the United States, but last month’s sales at the plant reached only 500 units. As the U.S. government moves to slow the transition to electrification, there are growing concerns that Hyundai Motor’s plan to increase its local production capacity to 1.2 million vehicles per year by 2030 may face setbacks.

According to industry sources on April 20, HMGMA sold 391 units of the IONIQ 5 and 109 units of the IONIQ 9 last month, totaling 500 units. This figure is just one-tenth of last year’s average monthly sales (5,167 units), and it is the first time since mass production began in December 2024 that HMGMA’s monthly sales have fallen below 1,000 units.

So far this year, HMGMA’s monthly sales have continued to decline, with 2,280 units in January and 1,305 units in February. Cumulative sales for the first quarter were 4,085 units, a dramatic 63% decrease compared to 11,033 units during the same period last year. Although HMGMA has an annual production capacity of 300,000 vehicles, it has not yet reached full operation. Last year’s sales amounted to just 62,000 units.

In the U.S., electric vehicle sales have plummeted since the end of government subsidies last year. As HMGMA is primarily focused on electric vehicle production, it is bearing the brunt of this downturn. The Trump Administration ended the electric vehicle tax credit of up to USD 7,500 at the end of September last year through a large-scale tax cut bill known as the One Big Beautiful Bill Act (OBBBA).

Immediately after the tax credit ended, U.S. electric vehicle sales in the fourth quarter of last year plunged by about 46% compared to the previous quarter, leading to a severe drop in demand. According to U.S. auto market research firm Cox Automotive, first-quarter electric vehicle sales in the United States totaled approximately 216,000 units, down 27% year-on-year.

Hyundai and Kia’s electric vehicle sales in the first quarter also fell 21% from last year to 18,086 units. Hyundai sold 12,810 units, an 11% decrease year-on-year, while Kia sold 5,276 units, a 39% drop.

Hyundai plans to focus on the sales of hybrid vehicles, which have emerged as an alternative to electric vehicles, and to expand its lineup. By 2030, the company will launch 36 new models in North America, adding hybrid options to all major models. To achieve this, HMGMA will begin producing hybrids as early as the third quarter of this year, and next year will start producing and selling extended-range electric vehicles (EREVs) capable of traveling up to 600 miles (965 km) on a single charge.

To strengthen its position in the U.S. market, Hyundai recently unveiled the Bolder concept car at the New York International Auto Show as a preview for its upcoming pickup truck. The company aims to launch body-on-frame pickup trucks and sport utility vehicles (SUVs) based on this concept before 2030.

However, it is expected to be difficult to offset sluggish electric vehicle sales in the near term. There are also concerns about a potential sales gap in the U.S. as Michael Orenge, who served as Vice President of Sales at Hyundai’s U.S. subsidiary for 18 years, recently moved to Stellantis as Executive Vice President of Sales. Hyundai stated, "Claudia Marquez, Chief Operating Officer (COO) of our U.S. subsidiary, will oversee the sales organization," adding, "We will ensure business continuity and focus on strengthening our growth trajectory."

Yonhap News Agency

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