Even with strong demand up until the federal tax credit expired, Hyundai’s EV sales crashed last month. Hyundai, Ford, Kia, and Honda sold significantly fewer EVs in October.
Hyundai EV sales drop in October as the tax credit ends
Hyundai is still on pace for its third straight record sales year in the US. The South Korean automaker sold 70,118 vehicles in the US last month, 2% fewer than it did in October 2024.
Although Hyundai sold a record number of “electrified” vehicles, it was hybrids that carried the growth in October. Several hybrid models set new October sales records, including the Sonata HEV and Elentra HEV. The Palisade also had its best October with the new HEV version now rolling out.
“Hybrid vehicles led the way in October with a 41% increase, and electrified sales were up 8%,” said Hyundai Motor North America’s CEO, Randy Parker.
Fully electric vehicles, on the other hand, didn’t fare as well. Hyundai sold just 1,642 IONIQ 5s last month, down 63% from October 2024 and a stark contrast from the over 8,400 sold in September.
Sales of the IONIQ 6 fell 52% to 398, while Hyundai sold just 317 units of its three-row electric SUV, the IONIQ 9. Parker said that Hyundai saw “strong EV demand leading up to the expiration of the federal tax credits,” adding that the shift “has temporarily disrupted the market.”
Despite this, Hyundai’s momentum “remains strong,” and according to Parker, it’s still on pace for record retail and total sales in 2025. Parker said Hyundai is confident the EV market will reset following the policy changes.
Top comment by Charles Christie
This always happens when incentives change. A flood of orders come in right before the incentives end, then the next quarter looks bad since an outsized number of people who could have waited didn't.
Hyundai wasn’t the only brand with significantly lower EV sales following the expiration of the tax credits. Ford, Kia, and Honda all sold drastically fewer electric vehicles last month.
Although the tax credit expired, Hyundai is still offering big savings. After cutting prices on the 2026 IONIQ 5 by nearly $10,000 on some trims compared to the 2025 model, Hyundai’s electric SUV now starts at under $35,000.
Hyundai is also still offering the $7,500 credit for the 2025 IONIQ 5. So, why are EV sales collapsing? It’s likely due to the rush of buyers that flooded the market in the months leading up to the tax credit’s expiration.
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