Hyundai Suspends Ulsan Plant EV Production Line for 4th Time This Year

Hyundai Motor Company will pause operations at its Ulsan Plant 1 electric vehicle (EV) line for three days starting June 25, marking the fourth shutdown of the same line this year. 

The temporary halt affects Line 2 of Ulsan Plant 1, which assembles the Ioniq 5 and Kona EV, two of Hyundai’s popular electric models. Both vehicles have faced a steep decline in export orders in recent months.

Exports fall sharply as subsidies end, tariffs rise

According to Hyundai, exports of the Ioniq 5 dropped 65% year-over-year from January to April, totaling just 9,663 units. Kona EV exports also fell 42% to 5,916 units over the same period, according to the Chosun Ilbo. Analysts attribute the drop in part to the rollback of EV subsidies in key markets and growing uncertainty surrounding trade policy, particularly in the United States, where a 25% tariff on imported vehicles was imposed last month under the Trump administration.

Hyundai had previously attempted to maintain minimal operations using an “empty pitch” method, where the facility’s assembly line runs without building cars. However, with demand slowing down, the company has opted for a full pause. The same production line was previously shut down in February, April, and May.

Hyundai faces pressure to recalibrate global EV strategy

The repeated halts come at a time when Hyundai, like many automakers, is reassessing its EV roadmap amid slower-than-expected market growth. While demand remains strong in some regions, global uncertainties–which range from policy shifts to consumer hesitancy and controversies from EV leaders like Tesla CEO Elon Musk–have forced automakers to scale back near-term production goals.

Hyundai has not indicated whether further suspensions are planned, but the Ulsan Plant 1 disruptions highlight the need for greater flexibility in EV manufacturing operations.

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