Hyundai and Kia's EV Exports to the U.S. Plummet by Nearly 90%
Hyundai Motor's earnings fell by 16% despite committing to a $21 billion investment plan.
Hyundai and Kia's electric vehicle (EV) exports to the United States have experienced a dramatic drop in 2025. From January to May, the combined exports totaled just 7,156 units, a decrease of 88% compared to the same period in 2024 when they exported 59,705 units [1]. Hyundai's exports fell by 87% to 3,906 units, while Kia's dropped by 89.1% to 3,250 units [1]. This marks the lowest export volume to the U.S. in recent years, excluding 2021—the year Hyundai Motor Group began aggressively pushing its EV strategy [1].
The export slump is primarily attributed to two major factors: a shift towards local production and weak demand in the U.S. market. Hyundai Motor Group has been ramping up U.S. manufacturing, particularly with the launch of new facilities such as the EV plant in Georgia. This shift is reducing the need for exports from South Korea, as more vehicles are being produced and sold locally [2][4]. Additionally, the U.S. EV market is experiencing cooling demand. With the federal EV tax credits set to expire in September 2025, the outlook for the latter half of the year remains challenging [1].
The downward trend contrasts sharply with the previous years, which saw steady growth in exports prior to the current collapse [1][3]. The table below shows the exports for each year from 2021 to 2025.
| Year (Jan–May) | Hyundai & Kia EV Exports to U.S. | |----------------|----------------------------------| | 2021 | 4,441 units | | 2022 | 28,474 units | | 2023 | 46,542 units | | 2024 | 59,705 units | | 2025 | 7,156 units |
The decline in exports is not only a direct result of increased local U.S. production but also reflects broader market headwinds. If demand continues to weaken, there could be further disruptions, potentially affecting the production schedules at Hyundai’s new dedicated EV plant in Ulsan, South Korea, which is slated to begin full-scale operations next year [1].
Hyundai and Kia’s strategy appears to be shifting towards localized production in major markets like the U.S., reducing reliance on exports from Korea. However, the trajectory for U.S. EV sales in the near term remains uncertain, especially as incentives expire and consumer sentiment softens [1][2].
[1] "Hyundai, Kia EV exports to U.S. plummet 88% in first half of 2025". JoongAng Ilbo. Link
[2] "Hyundai to launch EV plant in Georgia". JoongAng Ilbo. Link
[3] "Hyundai, Kia EV exports to U.S. reach record high in 2023". JoongAng Ilbo. Link
[4] "Hyundai, Kia ramp up U.S. manufacturing". JoongAng Ilbo. Link
- The drop in Hyundai and Kia's EV exports to the U.S. can be linked to the growth of the finance industry in the country, as the shift towards local production likely requires significant investments and loans.
- In the arts industry, the decrease in exports might stimulate discussions on the impact of globalization on domestic industries, especially in the context of Korea's EV manufacturers.
- The plummeting exports indicate a potential slowdown in the automotive industry, which could have a ripple effect on other related industries like transportation and logistics.
- As the U.S. government evaluates its policies on renewable energy and EV incentives, the environment sector may play a crucial role in shaping the future business landscape, particularly for the automotive industry.
