Hyundai says Korea EV slowdown eased in Q1

Hyundai Motor said in its quarterly report that South Korea’s electric vehicle market slowdown eased in the first quarter as automakers lowered prices.

The company said industry EV sales rose 150.9% year on year while total vehicle demand increased 5.6%.

Hyundai said its domestic EV sales rose 59% from a year earlier, while Ioniq 5 sales climbed 84.8% to 7,625 units from January to April.

The company sells 10 EV models in Korea, including the Ioniq 5, Ioniq 6, Ioniq 9, and Genesis GV60.

Korea’s market is also seeing stronger competition from cheaper imports.

Tesla’s sales from January to April jumping 445.2% to 34,154 units, ahead of Hyundai’s 24,785, while BYD sold 5,991 vehicles.

🔗 Source: The Korea Herald

🧠 Food for thought

Implications, context, and why it matters.

EV sales are rising as carmakers cut prices and South Korea weighs new subsidy rules

Tesla cut Model Y prices by as much as 9.4 million won (US$6,400) in December 1.
Hyundai answered with savings of up to 6 million won (US$4,100), or 6.5 million won (US$4,500) on the Ioniq 6 when discounts are combined 1.
BYD pushed prices lower with models such as the Dolphin, which launched at 24.5 million won (US$17,000) 2.
Imported brands made up 42.8% of South Korea’s EV market, prompting new policy plans 3.
South Korea plans an EV subsidy scorecard 3. It would weigh investment in South Korean research and development (R&D) centers plus local industrial contribution, domestic jobs, and service coverage.

South Korea is joining a wider move to tie EV support to local investment

Linking subsidies to in-country spending fits a wider push by governments to back homegrown industry 3.
The approach resembles the U.S. Inflation Reduction Act, a 2022 law that uses tax credits and other incentives to encourage domestic manufacturing and secure supply chains.
Global carmakers now need to rethink their South Korea plans.
Tesla faces pressure to widen its local service footprint and make other in-country contributions to keep subsidy access under the proposed rules 3.
The EV market is becoming more divided, with national industry goals carrying more weight than open competition.