Hyundai Motor Company's first dedicated electric vehicle, the 'Ioniq 5', has surpassed 100,000 units sold in the U.S. market, 3 years and 1 month after its launch.
Hyundai Motor Company announced on the 12th that the cumulative sales of the Ioniq 5 in the U.S. reached 101,453 units by December of last year. This record was set 3 years and 1 month after its first sale in the U.S. in December 2021, making the Ioniq 5 the first electric vehicle launched by Hyundai Motor Group in the U.S. to surpass 100,000 in cumulative sales.
At the time of its launch in December 2021, the Ioniq 5's monthly sales were merely 153 units. However, starting with 22,982 units in 2022, sales have increased each year, reaching 33,918 in 2023 and 44,400 last year.
In particular, last year saw a 30.9% increase in sales compared to the previous year, which was viewed as a remarkable achievement in light of the global electric vehicle chasm (temporary demand slowdown). The Ioniq 5 faced challenges due to the Inflation Reduction Act (IRA), which initially allowed subsidies only for U.S.-made electric vehicles.
The U.S. Treasury's finalization of the 'tax credit provisions for commercial electric vehicles (45W)' in December 2022 served as a turning point for the rebound in Ioniq 5 sales. The 45W primarily aims to provide tax credit benefits for electric vehicles regardless of origin for vehicle lending and rental cars.
Starting this year, as Hyundai Motor Group's electric vehicle plant in Georgia, the 'Hyundai Motor Group Metaplant America (HMGMA)', begins full operations, it is expected to benefit from subsidies under the IRA. HMGMA plans to increase its annual production capacity from the current 300,000 to 500,000 units.
Hyundai Motor Group plans to pursue a 'local production-local consumption' strategy in response to the inauguration of Donald Trump's second administration. The goal is to raise the local production ratio of five vehicle models, including the Ioniq 5, Ioniq 9, Kia EV6, EV9, and Genesis GV70 electric vehicles, to 70%.