Hyundai EV Sales Plummet Following Tax Credit Removal
Hyundai’s electric vehicle sales have faced a significant downturn following the expiration of federal tax credits. Despite strong demand leading up to this change, the company reported dramatic decreases in EV sales for October.
Hyundai EV Sales Decline
Last month, Hyundai managed to sell 70,118 vehicles in the United States, reflecting a 2% decrease compared to October 2022. While Hyundai maintained momentum with its overall sales, the electric vehicle segment did not fare as well.
Hybrid Vehicles See Growth
Hyundai reported record sales for hybrid vehicles, which contributed to their overall performance. Notable hybrids like the Sonata HEV and Elantra HEV achieved new October sales records. The CEO of Hyundai Motor North America, Randy Parker, noted that hybrid sales surged by 41%, while overall electrified vehicle sales rose by 8%.
Drastic Drop in Fully Electric Sales
In stark contrast, fully electric vehicle sales plummeted. The IONIQ 5 saw a 63% decline, selling only 1,642 units compared to over 8,400 units in September. Additionally, the IONIQ 6’s sales dropped by 52%, with only 398 units sold, and the IONIQ 9 had a mere 317 units sold.
Market Disruption After Tax Credit Expiration
Parker attributed the decline in EV sales to the market disruption caused by the expired federal tax credits. He expressed confidence that Hyundai will still achieve record sales in 2025 as the market adjusts. Other brands, such as Ford, Kia, and Honda, also experienced lower electric vehicle sales during the same period.
Incentives to Attract Buyers
Despite the challenges, Hyundai is proactively addressing the market situation. The company has reduced prices on the 2026 IONIQ 5 by nearly $10,000 for certain trims, with starting prices now under $35,000. Additionally, the $7,500 credit for the 2025 IONIQ 5 remains available.
As consumers navigate the shifting landscape of electric vehicle offerings, Hyundai aims to sustain its competitive position in the market.
- October 2023 Hyundai vehicle sales: 70,118 units.
- Fully electric IONIQ 5 sales: 1,642 units, down 63%.
- IONIQ 6 sales: 398 units, down 52%.
- IONIQ 9 sales: 317 units.
- Hybrid vehicle sales: 41% increase in October.
