Korean carmakers, battery firms forced to reshape US strategy amid EV subsidy cutoff

Hyundai Motor Group and local battery firms are being forced to reshape their sales strategy in the United States, as they will no longer receive electric vehicle (EV) subsidies starting this month. According to updated U.S. federal EV subsidy rules, the $7,500 (10 million won) EV tax credit to automakers expired Sept. 30. This increases the cost burden, particularly for Korean carmakers Hyundai Motor and Kia, which have both rapidly increased their sales of eco-friendly cars in the U.S. over the past few years. Following the subsidy cut, Hyundai Motor decided to cut the sticker price of the carmaker’s flagship IONIQ 5 electric SUV by as much as $9,800 for its 2026 model. For 2025 models, the carmaker will also offer a $7,500 cash discount. Hyundai Motor explained the latest decision is aimed at keeping its market share on a stable growth track in its largest export market. According to data from the automaker, the number of combined vehicle sales for Hyundai Motor and Genesis reached more than 71,000 vehicles in September in the U.S., up 14 percent from a year earlier. The figure betwe