Three electric vehicle models from Hyundai Motor have been excluded from the tax credit under the U.S. Inflation Reduction Act (IRA). This is attributed to some components of these vehicles being made in China.
According to the complete automobile industry on the 21st, Hyundai's Ioniq 5, Ioniq 9, and Genesis eGV70 have been excluded from the U.S. electric vehicle subsidy program. Previously, on the 1st, the U.S. Department of Energy included these vehicles and the Kia EV6 and EV9, which are produced by Hyundai Motor Group, under the IRA for subsidy eligibility.
The IRA contains provisions to provide a maximum of $7,500 in subsidies in the form of tax credits for electric vehicles that meet sourcing requirements for batteries and critical minerals and are manufactured in the U.S.
It is believed that the exclusion of Hyundai's three electric vehicle models from the revised subsidy eligibility is due to the regulations against using Chinese components. The U.S. government only provides subsidies for electric vehicles that do not use parts made by foreign entities of concern, including China, Russia, and North Korea.
Hyundai Motor Group noted that it will meet the subsidy eligibility requirements again in the second quarter of this year by complying with the components' sourcing regulations. However, there are observations that newly inaugurated U.S. President Donald Trump is considering abolishing or significantly revising the IRA, so the situation warrants close attention.