Hyundai Halts Ulsan EV Line Again: What’s Behind the Fourth Shutdown This Year?

Hyundai’s Fourth Shutdown in 2025: What’s Happening?

Did you know that Hyundai Motor is halting its Ulsan plant’s electric vehicle production line yet again? As of June 2025, this marks the fourth time this year that the automaker has suspended the line responsible for the Ioniq 5 and Kona EV. The latest pause, from June 25 to 27, comes after similar shutdowns in February, April, and May. This isn’t just a blip—Hyundai’s repeated decisions signal deeper trouble in the EV sector, both domestically and globally. The company cites sluggish sales, ballooning inventory, and export woes as the main reasons. Even with aggressive discounts and promotions, the demand simply isn’t bouncing back.

Global EV Slowdown: The ‘Chasm’ and Its Impact on Hyundai

The term ‘EV chasm’ is buzzing in Korea’s auto circles. It refers to a temporary but painful stagnation in electric vehicle demand, especially as early adopters have already bought in, but mainstream consumers remain hesitant. Hyundai’s own data shows a sharp drop: Ioniq 5 exports from January to April 2025 plunged 65% compared to last year, and Kona EV exports fell 42%. This isn’t just a Hyundai problem—global EV sales growth has slowed, with many automakers adjusting their strategies. Factors like high interest rates, reduced government subsidies in Europe and North America, and a lack of charging infrastructure are all playing a role.

US Tariffs and Export Headwinds: A Double Whammy

What’s making things worse for Hyundai? The US government, under President Trump’s administration, has slapped a 25% tariff on imported cars, hitting Korean automakers hard. Hyundai’s US-bound EV exports have dropped sharply, and the company is struggling to offset this with domestic sales. The removal of subsidies in major markets like Germany, Canada, and the US has further eroded demand. As a result, Hyundai has been forced to run its production lines at reduced capacity, sometimes leaving entire sections of the conveyor belt empty—a practice that couldn’t last forever.

Domestic Sales Tactics: Discounts, Promotions, and Still No Relief

Hyundai hasn’t been sitting still. The company has rolled out steep discounts—up to 6 million won (about $4,300) off the Ioniq 5—and special financing offers to lure buyers. For young customers under 35, there are extra subsidies, and creative promotions like ‘Trip to Okinawa’ giveaways for new EV buyers. Despite these efforts, the domestic market isn’t absorbing enough vehicles to make up for lost exports. Inventory is piling up, and the factory floor is quieter than ever.

Community Reactions: Frustration, Worry, and Hope

On major Korean online communities like Theqoo, DC Inside, and FM Korea, reactions are mixed but intense. Some commenters express concern for workers, noting that repeated shutdowns threaten job security and local economies. Others blame Hyundai’s slow response to changing market trends, or criticize the company for not matching the aggressive pricing and innovation of foreign EV brands. Positive voices highlight Hyundai’s efforts to keep workers informed and offer retraining, but there’s a clear sense that the company is at a crossroads. Labor unions at Ulsan are reportedly pushing for new model assignments and more transparent communication from management.

Cultural Context: Why This Matters for Korean Industry and Fans

For international fans and observers, it’s important to understand how deeply Hyundai is woven into Korea’s economic and cultural fabric. The Ulsan plant isn’t just a factory—it’s a symbol of Korean industrial might, and its struggles echo throughout the country. The EV slowdown is forcing a national conversation about the future of Korean manufacturing, the need for innovation, and the risks of relying too heavily on a single export market. Meanwhile, the rise of imported EVs, especially from Tesla and European brands, is shifting consumer perceptions and challenging the old guard.

Lessons from Abroad: How Other Markets Are Coping

Korea isn’t alone in facing an EV ‘chasm’. Automakers in the US, Europe, and China are all grappling with similar issues: slowing demand, high costs, and the challenge of convincing mainstream buyers to make the switch. In response, some companies are doubling down on hybrids, while others are investing in new battery technologies or expanding their charging networks. For Hyundai, the current crisis is both a warning and an opportunity—to improve quality, rebuild consumer trust after high-profile recalls, and sharpen its global competitiveness.

Looking Ahead: What’s Next for Hyundai and Korean EVs?

So, what’s the road ahead? Industry experts say this is likely a temporary adjustment rather than a permanent retreat from EVs. Hyundai is expected to continue investing in new models and technologies, but with a sharper focus on efficiency and market fit. The company’s ability to weather this storm will depend on how quickly it can adapt to global trends, restore consumer confidence, and carve out a niche in an increasingly crowded EV landscape. For now, all eyes are on Ulsan—and on how Korea’s flagship automaker will steer through these turbulent times.