Hyundai Motor Company will temporarily halt EV production at its Ulsan Plant 1, which manufactures the IONIQ 5 and Kona Electric, from June 25 to 27, 2025. This is the fourth production stoppage this year, reflecting the ongoing challenges faced by the automaker amid a slowdown in global EV demand.
Repeated Shutdowns Due to Low Sales Volume
Production at the Ulsan Plant 1 was previously paused for approximately four days each in February, April, and May 2025. According to sources, these interruptions are driven by insufficient production volume, a result of weakening electric vehicle sales.
Hyundai’s Promotional Efforts Fail to Lift Performance
To counteract the declining demand, Hyundai introduced in Korea a series of domestic discounts and interest-free financing promotions in May to stimulate both local and overseas sales. However, despite these efforts, market performance has not improved significantly, prompting the latest production halt and exports didn’t helped as both models exports dropped 65% (IONIQ 5) and 42% (Kona Electric).
Union Members Demand New Model Allocation
In response to the frequent shutdowns, union members at the Ulsan Plant are calling for the allocation of new vehicle models to their production line. Their objective is to secure more consistent manufacturing volume and prevent future work disruptions.
IONIQ 5 Faces Headwinds Amid Global EV Slowdown
The Hyundai IONIQ 5, once seen as a flagship EV built on the advanced E-GMP platform, is now facing production adjustments due to a global cooling of EV demand. Increased market competition and shifting consumer sentiment have put pressure on even well-regarded models like the IONIQ 5 and Kona Electric.
What’s Next for Hyundai’s EV Strategy?
While Hyundai has not announced any additional production halts beyond June, the current trend raises concerns about its EV inventory management, sales strategy, and the need for product portfolio realignment to adapt to changing market dynamics.
