Due to the newly introduced electric vehicle subsidy program in the United States, electric vehicle production is limited, which means that the electric vehicles of the two major brands of Hyundai Motor Group, Hyundai and Kia, cannot be subsidized in the United States.
Judging from the reports, the United States and South Korea are discussing solutions to the differences in the electric vehicle subsidy program, and sources say it is expected to be resolved. The sources mentioned in the report that South Korean Trade Minister Ahn Duk-Geun is discussing with the relevant representatives of the United States, also revealed that they are trying to find a solution.
In the wave of development of electric vehicles, Hyundai Motor Group is also investing heavily, and Hyundai and Kia have both launched electric vehicles. The sources mentioned in the report that the two electric vehicles, the Hyundai IONIQ 5 and the Kia EV6, currently have considerable sales in the U.S. market, pushing Hyundai Motor Group’s share in the U.S. electric vehicle market second only to Tesla.
However, since neither Hyundai nor Kia has started to produce electric vehicles in the United States, the US will only grant electric vehicle subsidies to electric vehicles produced in the United States, which will affect the prospects of Hyundai and Kia’s electric vehicles in the US market.
Moreover, Hyundai Motor Group is also accelerating the production of electric vehicles in the United States so that it can receive subsidies. It has been reported earlier that Hyundai is considering accelerating the construction of its electric vehicle factory in the United States, and it will start construction ahead of schedule this year.
It was originally planned to start construction in January 2023 and be completed in the first half of 2025. After completion, it will be used to produce Hyundai IONIQ 7 and Kia EV6. And this week, it was reported that Hyundai and Kia are considering switching two U.S. plants to electric vehicles, the Hyundai IONIQ 5 and Kia EV6, respectively, as the new plant will take some time to start production.