Although President-Elect Donald Trump is promising to end the $7,500 EV tax credit, Hyundai is confident it will continue growing in the US. The company just opened a massive new $7.6 billion manufacturing plant in Georgia as it looks to grab a bigger share of the US market.
A Reuters report earlier this month claiming Trump’s transition team is planning to end the $7,500 federal EV tax credit is causing US automakers to brace for the potential major impacts.
Although US market leader Tesla reportedly supports the move, Hyundai Motor, including Kia, is preparing for any outcome.
“Hyundai did not build our [US] investment plan based on incentives; the plan was even made before Trump’s [first] term,” Hyundai’s newly elected CEO, Jose Munoz, said at the LA Auto Show last week.
In an interview with Korean media at the event (via Korea JongAng Daily), Munoz said, “If the Inflation Reduction Act goes out, it goes out for everybody, and we can even do better.” Although Hyundai’s EVs currently don’t qualify for the full $7,500 credit, like some US rivals, the company is still gaining market share.
“Competitors like Tesla step by step are losing market share and we continue to increase our share,” Hyundai’s current global chief operating officer explained.
Hyundai to remain flexible if Trump ends the EV tax credit
Hyundai opened its massive new $7.6 billion manufacturing plant in Georgia last month. The first vehicle that rolled off the assembly line was the new US-made 2025 Hyundai IONIQ 5. Hyundai upgraded its top-selling EV with more range, features, and a sleek new design. It also comes with an NACS port to charge at Tesla Superchargers.
Last week, the company also unveiled its first three-row electric SUV, the IONIQ 9, which will also be built at the facility.
However, until the battery unit opens next year, Hyundai’s US-built EVs qualify for a partial $3,750 credit. Until then, Hyundai is passing on the full $7,500 for leases.
Hyundai fast-tracked production to level the playing field in the US, its most important market. With Trump reportedly planning to end subsidies, Hyundai’s new CEO said the company will remain flexible.
“We will not only produce EVs but also hybrids and extended-range EVs at our plants, and therefore, the key for us is flexibility and then being able to adjust to what the customers want,” Munoz told reporters.
As the US is expected to pull back, China’s EV market continues surging. China became the first country to build over 10 million new energy vehicles (EVs and PHEVs) in a single year.
EV leaders, like BYD, are looking overseas to drive growth as a wave of low-cost rivals is hitting China. As sales continue surging, BYD is quickly catching up to Ford in global deliveries.
Munoz said, “China is a big threat,” but he believes Hyundai can compete with “technological prowess” and “quality.”
“A lot of consumers, when they buy Chinese products, they realize maybe the quality is not as good as others,” Hyundai leaders explained. That’s where Hyundai wants to “elevate our game in terms of providing not only the best quality but also the best services to our customers.”
Hyundai Motor, including Kia and Genesis, is outpacing Ford and GM as the second-largest seller of EVs in the US through September. With US production kicking off, Hyundai aims to solidify its spot in the US auto market.