Hyundai and Kia Pivot to Europe as U.S. EV Subsidies Set to End

Hyundai Motor Group’s Hyundai and Kia brands are shifting their electric vehicle strategy toward Europe as the U.S. prepares to end federal EV subsidies and maintain a 15% tariff on vehicle imports.

The looming rollback in American tax incentives has cast uncertainty over Hyundai and Kia’s U.S. EV momentum, prompting the automakers to double down on European expansion. Industry analysts say Europe could become the next major battleground for global EV competition during the Trump administration.

Broad EV lineup positions Hyundai Group for European growth

Earlier this year, the Hyundai Motor Group celebrated the inclusion of five EV models across its Hyundai, Kia, and Genesis brands on the U.S. tax credit list under the Inflation Reduction Act (IRA). Hyundai’s IONIQ 5 and IONIQ 9 qualified for U.S. tax credits. Kia’s EV6 and EV9, along with Genesis’ GV70 sedan, made the list as well.

However, with IRA tax credits potentially vanishing by October under the Trump administration, the Group is redirecting focus to Europe, the world’s second-largest EV market after China. Europe accounted for 20.6% of global EV sales in H1 2025, according to SNE Research. Hyundai’s price-competitive EV lineup gives it an advantage as the company eyes more aggressive regional growth.

Upcoming launches in Europe include IONIQ 9 and Kia EV4/EV5

Hyundai and Kia plan to launch key new EV models in Europe before the end of 2025. These include the three-row Hyundai IONIQ 9 SUV, as well as Kia’s EV4 and EV5 sedans.

In February, Kia previewed its compact EV2 concept at 2025 EV Day in Barcelona, signaling a deeper push into Europe’s affordable EV segment. As Chinese automakers dominate their home market, Hyundai Group sees Europe as the most viable path to global EV growth amid shifting U.S. policy dynamics.

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