Hyundai and Kia scored a win on Friday after the South Korean government pledged to boost EV subsidies by 20%.
Hyundai and Kia get a lift with government EV support
Hyundai Motor, including Kia and Genesis, is going all-in on the US market, pledging to ramp up local production and introduce a range of new electrified vehicles.
Like many others, the new 25% tariffs for exports to the US have already taken a toll on the South Korean auto giant. Hyundai said it took about 1.8 trillion won ($1.2 billion) in tariffs-related losses in the third quarter. Kia reported a 1.2 trillion won ($830 million) hit.
To help it overcome the extra costs, the South Korean government said it will increase EV subsidies by 20% next year.
The South Korean Ministry of Foreign Affairs announced on Friday (via Reuters) plans to raise EV subsidies by 20%, from 780 billion won ($540 million) this year to 936 billion won ($645 million) in 2026.
South Korea also committed over 15 trillion won ($10.3 billion) in financial support for domestic auto parts and car makers in 2026, including low-interest-rate loans and guarantees.
The government is ramping up investments in next-generation vehicles, aiming to produce fully autonomous cars domestically by 2028. South Korea is dedicating an extra 50 billion won, on top of the 150 trillion won in funding, to advance the new tech. It’s also looking to incentivize automakers to reach specific targets, such as five-minute fast charging, a 1,500 km (932 miles) driving range, and prices on par with gas vehicles by 2030.
Separately, the US and South Korea agreed to lower tariffs on imported goods, including vehicles from 25% to 15%. The lower rate puts South Korean automakers like Hyundai and Kia on par with Japanese brands. Japan reached a similar deal with the US in September.
Top comment by N1
Hopefully, this means smaller EV’s will debut here in the next yr or so like the EV3.
Despite the tariffs, Hyundai and Kia both set new third-quarter sales records in the US. Combined, they sold over 480,000 vehicles, an increase of 12% compared to Q3 2024.
To offset the loss of the $7,500 federal tax credit, Hyundai and Kia are offering some of the most significant discounts on EVs in the US.
Earlier this month, Kia introduced a new $10,000 customer cash discount across its entire lineup. The Hyundai IONIQ 5 remains one of the most affordable EVs in the US, with leases starting as low as $189 per month.
Interested in a test drive? We can help you get started. Check out our links below to find Hyundai and Kia EVs near you.
- See Kia EV9 deals near you
- See Kia EV6 deals near you
- See Kia Niro EV deals near you
- See Hyundai IONIQ 5 deals near you
- See Hyundai IONIQ 6 deals near you
- See Hyundai IONIQ 9 deals near you
FTC: We use income earning auto affiliate links. More.
Comments