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Photo = Yonhap news |
[Alpha Biz= Kim Sangjin] As the U.S. Trump administration's second term officially begins, there are indications that electric vehicle (EV) subsidies (tax credits) may be reduced or eliminated. In the latest update, the number of electric vehicle models eligible for tax credits in the U.S. has been drastically reduced from 40 to 25.
Among the automakers with new models added to the list, Hyundai Motor Group was the only one to receive such an addition.
According to reports on Sunday, the U.S. Environmental Protection Agency (EPA) confirmed that 25 electric vehicle models are eligible for tax credits this year under the Inflation Reduction Act (IRA), which includes a restriction on foreign-owned entities (FEOC). This represents a decrease of 15 models compared to last year, which had 40 eligible vehicles.
The number of participating automaker groups has also reduced, from 8 groups and 11 brands last year to 6 groups and 10 brands this year. Hyundai Motor Group was the only automaker group to have models added to the list, with 5 models now included: Hyundai Ioniq 5, Hyundai Ioniq 9, Kia EV6, Kia EV9, and Genesis GV70. This is the first time Hyundai Motor Group’s vehicles have been included in the IRA-related subsidy list. Selected vehicles are eligible for up to $7,500 (approximately 1.1 million KRW) in tax credits.
Since October of last year, Hyundai Motor Group began production of electric vehicles at its dedicated plant, Hyundai Motor Group Metaplant America (HMGMA) in Georgia, as well as Kia’s Georgia plant.
Under the new IRA regulations, vehicles that use batteries manufactured from core minerals extracted, processed, or recycled in foreign-owned entities are not eligible for subsidies. As a result, many vehicles made with such materials have been excluded from the tax credit list this year.
Volkswagen Group, which had 10 models eligible last year, including Volkswagen and Audi, has been entirely excluded from this year’s list. American EV brand Rivian also saw all of its 7 models removed from the list, and Japan’s Nissan had one model dropped.
Hyundai Motor Group, which recorded its highest-ever sales in the U.S. market last year, is expected to strengthen its competitive position in the U.S. thanks to this new subsidy benefit. According to Hyundai Motor Group, the combined sales of Hyundai and Kia in the U.S. reached 1.708 million units in 2023, marking a 3.4% increase compared to the previous year and setting a new record.
Alphabiz Reporter Kim SangJin(letyou@alphabiz.co.kr)
