Hyundai Motor is halting the production of the Genesis GV60, a midsize electric sports utility vehicle (SUV), for approximately two months from December until January 2024. This pause in production is attributed to a decline in demand for electric cars and the depletion of year-end electric vehicle subsidies, leading the company to manage production levels more carefully.
According to industry sources on the 4th, Hyundai’s Ulsan plant suspended the production of the GV60 electric model earlier this month, and this hiatus is expected to continue until early next year.
Due to the production pause, consumers looking to purchase the GV60 electric model at this time will face a waiting period of approximately two and a half months.
Hyundai’s decision to halt GV60 production seems to be influenced by the recent slowdown in the growth of electric car sales. The GV60 marks Genesis’ inaugural dedicated electric vehicle model. Among the three Genesis electric models (GV60, GV70, G80), the GV60 was originally the best-selling model.
According to the Korea Automobile Manufacturers Association (KAMA), the cumulative sales of GV60 electric models from January to October this year amounted to 3052 units, surpassing both the GV70 electric car (2037 units) and GV80 electric car (933 units) by a considerable margin.
Another factor contributing to the production halt is the sharp decrease in demand as year-end government subsidies for electric cars are exhausted.
KAMA reported a 44% drop in domestic sales of electric passenger cars in December last year compared to the previous month. In December 2021 alone, sales of electric passenger cars decreased by 28% compared to the previous month.
An official from Hyundai mentioned, “If there were substantial overseas sales, we would continue production regardless of the depletion of domestic subsidies. However, in these circumstances, suspending production temporarily is more efficient than continuing production.”