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Photo = Yonhap news |
[Alpha Biz= Kim Jisun] For the first time, Hyundai Motor Group's electric vehicles (EVs) have qualified for up to $7,500 in subsidies under the U.S. Inflation Reduction Act (IRA), a law introduced in 2022 to boost domestic clean energy industries such as EVs, solar, and wind power.
The IRA limits subsidies to EVs manufactured in the U.S. that meet specific battery component and material requirements. Hyundai and Kia had previously been excluded due to a lack of local production for key EV models and unmet battery requirements.
However, since the October 2023 launch of Hyundai Motor Group's "Metaplant America" in Georgia and compliance with battery regulations, five Hyundai and Kia models are now subsidy-eligible, second only to Tesla's nine models.
The U.S. Department of Energy's updated list of subsidy-eligible EVs, released Wednesday, includes Hyundai's Ioniq 5 and Ioniq 6, Kia's EV6 and EV9, and Genesis' GV70 Electrified, among 25 models. In comparison, 34 models qualified in 2023 and 50 in 2022.
Tesla leads with nine models, including the Cybertruck, Model 3, Model X, and Model Y. Ford and Chevrolet each have three models, Cadillac has two, and Chrysler, Honda, and its luxury brand Acura have one each. Notably, European brands like Volkswagen and Audi were excluded again, along with Jeep and Rivian, which dropped off the list.
Demand for subsidy-eligible vehicles is expected to surge before year-end, as buyers aim to secure tax credits amid uncertainty over the subsidy’s future. The incoming Trump administration, set to take office on January 20, has announced plans to repeal the IRA subsidies.
Despite not having subsidies previously, Hyundai and Kia ranked third in the U.S. EV market by Q3 2023, trailing only Tesla and GM.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
