Unnamed industry sources told Yonhap that the decision follows a noticeable dip in EV orders, particularly from key international markets. The slowdown is reportedly linked to recent policy changes, including the reduction or removal of government EV subsidies in some regions and the imposition of import tariffs by the United States.
The production pause reflects growing challenges faced by global automakers in maintaining momentum in the EV segment, which has seen fluctuating demand due to economic uncertainty and shifting regulatory landscapes.
The timing of Hyundai’s move coincides with a new 25 percent tariff on imported cars and light trucks introduced by the U.S. government earlier this month. While Hyundai has yet to issue an official statement, the company recently pledged to maintain current prices on its EV models for the next two months in an effort to reassure customers and mitigate the effects of tariff-related cost increases. This pricing initiative is expected to last until June 2.
Hyundai’s decision comes on the heels of a major investment announcement in March, when the company unveiled a US$21 billion commitment to expand its operations in the United States. The automaker appears to be walking a tightrope—balancing efforts to localize production with the immediate need to adapt to unpredictable market and policy shifts abroad.
As automakers worldwide adjust to the complex dynamics of the EV transition, Hyundai’s production pause underscores the sector’s vulnerability to both geopolitical developments and consumer sentiment.