Hyundai, Kia see double-digit dip in EV sales in U.S. in September under IRA

[Photo provided by Hyundai Motor Co.]

Hyundai Motor Co. and Kia Corp.’s electric vehicle sales dipped by double digits in the United States last month against a month earlier, suggesting that Korea-made EVs are already discriminated by the Inflation Reduction Act (IRA) that restricts tax credits to EVs manufactured only in the U.S.

Hyundai Motor America announced Monday (local time) it sold 1,306 units of Ioniq 5 all-electric SUV in September, down 13.9 percent from a month ago and 34.2 percent from two months earlier.

Kia’s EV6 also were sold 1,440 units last month, losing 21.7 percent from August and 16.1 percent from July.

The IRA that took effect on Aug. 16 mandates EVs assembled in the U.S. with materials sourced from the U.S. eligible for up to $7,500 tax grants. Hyundai Ioniq 5 and Kia EV6 immediately lost the incentives.

The new law has sped up Hyundai Motor Group’s electrification schedule in the U.S., and the Korean auto mogul is building its first EV-dedicated plant in Savannah, Georgia to roll out green models of its all three auto brands – Hyundai Motor, Kia and Genesis. But its construction is expected to be completed in 2025.

As for the entire auto sales, Hyundai Motor Group saw an increase on year last month in the U.S.

Hyundai Motor sold total 59,465 cars, gaining 11 percent from a year-ago period. Tucson sold the most 12,971 units after adding 31 percent on year, and Santa Fe sold 9,192 units, up 40 percent. Auto sales in the third quarter totaled 184,431 units, climbing 3 percent to the largest for the quarter.

Kia’s September sales rose 6 percent on year to total 56,270 units in the U.S., the biggest for September. Its third-quarter sales amounted to 184,808 units, also the largest for the quarter. Sportage sales soared 88 percent to the biggest 12,412 units, and Sorento sales jumped 79 percent to 7,350 units.

Hyundai Motor shares were trading 2.27 percent higher at 180,500 won in Seoul trading at 10:27 a.m. Tuesday, and Kia 1.53 percent up at 73,000 won.

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