Two of the top-selling EV brands in the US are teaming up to overcome an uncertain market in 2025. Hyundai confirmed on Thursday that it’s nearing a deal with GM that would include re-badging EV models. Here’s what to expect.
After announcing its fourth quarter 2024 financials, Hyundai confirmed it was nearing a deal to sell commercial EVs to GM.
“We are considering re-badging our commercial EVs and supplying GM,” Hyundai’s CFO, Lee Seung Jo, said on a conference call (via Reuters) Thursday. Lee added the deal would pave the way for our entry into the North American commercial vehicle market.”
The partnership comes amid new uncertainty under US President Donald Trump’s control. Trump already eliminated the EV “mandate,” which never existed in the first place.
He also threatened to end the $7,500 federal EV tax credit, which would only put the US further behind China’s surging global presence.
Earlier this week, Trump even said he was considering imposing a 25% tariff on two of the US’s biggest trade partners, Canada and Mexico. Hyundai said shifting policies under Trump could hurt US sales. However, the company expects less impact than Japanese rivals like Toyota and Honda.
What the Hyundai EV supply deal with GM would involve
Le explained that Hyundai expects “more business uncertainties this year than ever before” with expected policy changes in the US, North Korea, and Europe.
Hyundai began production at its $7.6 billion EV plant in Georgia last October, the largest economic project the state has ever seen.
Although Hyundai announced new EVs made at the facility, including the updated 2025 IONIQ 5, would qualify for the $7,500 US tax credit, the DOE removed the company’s electric cars last week. The company said on Thursday it plans to expand US production to soften the blow of changing tariffs. Hyundai will also add hybrid output to the mix in Georgia.
Hyundai and GM signed an MoU last September with plans to explore joint EV powertrain, tech development, manufacturing, and more.
The Korean automaker confirmed on Thursday that it plans to sign binding contracts for passenger and commercial vehicles by the first quarter of 2025.
Although no other details were offered, a report from Korean media Pulse claimed GM CEO Mary Barra met with Hyundai Chairman Euisun Chung last November to discuss jointly developing a pickup truck. The report said plans included “badge engineering,” where Hyundai EV models would be sold under the GM name or vice versa.
Hyundai launched the ST1 electric business van platform last March, which would likely be the basis for GM’s commercial EV.
The platform is “tailored to various purposes,” including delivery, logistics, and more. It offers a refrigerated van and chassis cab option.
Electrek’s Take
Top comment by Swallow_Doretti
This is fantastic news, giving a solid sales channel for vehicles like the ST1 and upcoming Kia PV5. Either of those vehicles would be incredibly difficult for Kia and Hyundai to sell directly in the US under their own brands, being as neither has anything set up to handle the kinds of commercial fleet buyers that Chevrolet and its dealers handle daily. It's a win for Hyundai and a win for GM.
Although Hyundai is coming off its fourth-record retail sales year in the US, like all automakers, it’s bracing for changes in 2025.
According to Cox Automotive, Hyundai and GM had some of the highest EV sales growth in the US, behind Honda and Ford.
Hyundai Motor Group, including Kia and Genesis, sold more EVs than GM and Ford in the US last year, with over 120,000 units. A new partnership to supply commercial EVs to GM would help the Korean automaker further expand in its most important market.
Meanwhile, GM only sold 1,529 Brightdrop commercial electric vans in the US last year, far fewer than the Ford E-Transit (12,610) and Rivian EDV (13,243).
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