Hyundai Motor Co. has announced a cash bonus of up to $7,500 for U.S. buyers of its electric vehicles (EVs), a move designed to keep its products competitive against domestic cars that qualify for tax credits under President Joe Biden’s Inflation Reduction Act.
The cash incentives will apply to the Ioniq 5, Ioniq 6, and Kona Electric models, providing a significant boost for potential customers during the month-long incentive period ending on January 31st, 2024. The announcement, detailed on the company’s official website, comes in response to the clean vehicle tax credit program that favors domestic production of EVs and their components.
Hyundai’s current inability to meet these requirements stems from the lack of an operational EV factory in the United States. To address this, the Korean automaker is in the process of constructing an EV plant in Georgia, with assembly operations expected to commence by the end of 2024.
Despite these challenges, Hyundai, along with its affiliate Kia, sold a total of 69,259 battery-powered vehicles in the U.S. in 2023, making it the second-largest EV manufacturer in the market after Tesla Inc., according to data from BloombergNEF.
However, the number of vehicles eligible for tax credits is limited, and this list could potentially shrink further due to stringent regulations that encourage automakers to reduce their reliance on Chinese suppliers for parts.
The Inflation Reduction Act, introduced by the Biden administration, aims to stimulate American industry while transitioning the economy away from fossil fuels. This aligns with a broader national security objective: reducing dependence on supply chains perceived as vulnerable to China, thereby promoting greater domestic autonomy.
With this announcement, Hyundai reaffirms its commitment to the electric vehicles sector, demonstrating its willingness to adapt and compete in a rapidly evolving market. The company’s proactive approach to market challenges underscores its dedication to innovation and customer satisfaction, reinforcing its position as a global leader in the EV marketplace.
For more information on Hyundai’s electric vehicles and the new cash incentives, visit www.hyundai.com.
About Hyundai Motor Co.
Hyundai Motor Co., headquartered in Seoul, South Korea, is a global automaker committed to advancing the future of mobility through innovation. With a diverse product lineup that includes the popular Ioniq and Kona Electric models, Hyundai continues to redefine sustainable transportation while delivering exceptional value to its customers.
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