Hyundai suspends production of Ioniq 5 and Kona EV in Korea due to falling demand in Europe and America - media outlet

Hyundai Motor is set to halt production of the Ioniq 5 and Kona electric models at its plant in Ulsan, South Korea. According to Yonhap news agency, citing industry sources, the pause will begin on 24 April and will last a week.

Here's What We Know

The reason for the pause was weakening demand in key export markets - Europe, Canada and the US. Meanwhile, the Ioniq 5 is also produced at Metaplant's US facility in Georgia, while the Kona Electric is manufactured entirely in South Korea and supplied to overseas markets, including the US.

The decline in interest in electric vehicles is due, among other things, to changes in government policies in various countries. In a number of states, including Germany and Canada, subsidies for the purchase of electric cars have been reduced or completely cancelled. In the US, on the other hand, uncertainty remains amid the unpredictable import duty situation of President Donald Trump's administration.

In an attempt to boost electric car sales, Hyundai has been offering buyers interest-free loans in the US, as well as down payment support programmes in Germany and the UK. However, Yonhap sources said these measures have not had the expected effect.

This is the second shutdown of Hyundai's electric car production this year. Last time the plant suspended production for five days in February.

Source: Yonhap