Hyundai to Pause EV Production at Korea Plant, Claims Leaked Notice

Hyundai Motor Company will be pausing Line 12 at its Ulsan Plant 1 from May 27 to 30, according to a leaked internal notice shared by industry sources. Line 12 produces the Hyundai Ioniq 5 and the Hyundai Kona Electric, two of Hyundai’s compact electric vehicle offerings.

If the internal notice proves accurate, it would mark the third suspension of the Ulsan Plant 1’s EV production line this year. 

Hyundai’s EV Production Halt

According to the leaked internal notice, which was shared by Aju News, Hyundai’s electric vehicle sales have been sluggish this year due to slow domestic EV demand and a slowdown in the global electric car sector. Hyundai has implemented discounts and promotions for vehicles like the Ioniq 5, such as the H-Super Save special promotion, but the automaker’s inventory depletion rate has remained slow.

For buyers, this halt may signal market adjustments, but it also highlights competitive pressures against rivals like BYD and Tesla. Commenters from online forums in Korea also mentioned that electric cars, including Hyundai’s EV offerings, are still quite costly compared to conventional combustion-powered vehicles, making them a premium choice for consumers.

What the Internal Memo Says

The text of Hyundai’s leaked internal memo can be viewed below:

As you know from the business division committee, we have been continuously explaining the shortage of products since early May, but the reality is that the sluggish sales situation in the global electric vehicle market is not improving.

The company continues to carry out various promotional activities such as global promotions, and in particular, in order to stimulate domestic demand and ease the burden on customers in May, it is implementing the H-SUPER SAVE special promotion (up to 6 million won discount on the IONIG 5), and is making all-out efforts to secure additional orders, but is currently unable to secure additional quantities.

Even in these circumstances, the company has continued to operate the #12 line pitch line to minimize confusion on site, even at the cost of enormous inefficiency. However, it is now difficult to adjust the pitch.

Accordingly, the company has decided to close for the fourth week of May (5/27-5/30) and we hereby inform you of this. We ask for your understanding and active cooperation from the business division committees.

EV.com recognizes Hyundai’s production adjustments at its Ulsan Plant amidst the EV demand slump. You can explore the best offers on Hyundai electric vehicles and other EVs we have on our listings here.