Five models of electric vehicles from Hyundai Motor Group will receive subsidies of up to $7,500 (about 11 million won) in the United States. It has been reported that the models qualify for U.S. government subsidies due to meeting local production standards with the operation of the eco-friendly vehicle exclusive factory 'Metaplant America' constructed last year.
According to Hyundai Motor Group on the 2nd, the U.S. Department of Energy included Hyundai's Ioniq 5 and Ioniq 9, Kia's EV6 and EV9, and Genesis GV70 among five models eligible for subsidies under the Inflation Reduction Act (IRA) as of April 1.
The IRA includes provisions to provide a maximum tax credit of $7,500 for electric vehicles manufactured in the U.S. that meet origin requirements for batteries and critical minerals. This is the first time that Hyundai and Kia's electric vehicles have been eligible for subsidies.
Hyundai Motor Group invested $7.6 billion (about 11.15 trillion won) to establish the Metaplant in Georgia, U.S., which began operations in October last year. This plant has the capacity to produce 300,000 electric vehicles annually, transitioning the volume of electric vehicles previously exported from the Ulsan plant to local production to meet the subsidy criteria set by the IRA.
From January to November last year, Hyundai Motor Group sold 112,566 electric vehicles in the U.S. With the launch of the electric large sport utility vehicle (SUV) Ioniq 9, increasing the variety of models sold, the aid of subsidies is expected to enhance price competitiveness and significantly assist in improving future sales performances in the U.S.
However, there are forecasts that the benefits of subsidies may be limited following the inauguration of Donald Trump's second administration on the 20th. Reuters reported that Trump's transition team is pursuing a plan to abolish the subsidy regulations of the IRA.