Hyundai Motor prepares low-budget electric vehicles for Europe and wins union agreement to increase production of electric vehicles in the United States
Hyundai Motor Co. is rushing with budget electric vehicle models and increased production of electric vehicles in the United States under the full blessing of its union hawk as the South Korean auto giant joins other finished automakers worldwide to deal with the loss of tax credit in the United States. and the easing of incentives for electric vehicles around the world.
According to industry sources Thursday, Hyundai Motor Co. is developing two models of compact electric vehicles priced at 20,000 euros ($19,936.05) aimed at the European market where small four-wheelers are in favor. The Korean automaker’s 2023 Ioniq 5 and Volkswagen’s rival ID.4 were priced around $40,000 earlier.
GM’s Chevrolet Equinox coming out next year has a minimum price of $30,000. The 2023 Bolt EV and Bolt EUV will likely be available at lower prices of $5,900 and $6,300, respectively.
Finished automakers are finding it increasingly difficult to cap or reduce prices for electric vehicles amid higher material costs and the phasing out of government subsidies. According to California-based vehicle evaluation and automotive research company Kelley Blue Book, conventional combustion engine vehicles remain much more price competitive with an average price of $46,000 in June in the United States compared to the price $66,000 average electric vehicle.
Without addressing the price range, Chinese brands could dominate global roads while other EVs stall.
Hyundai Motor and Volkswagen are at the forefront of non-Chinese automakers in developing consumer electric vehicles,” said Kim Phil-soo, a professor at Daelim University.
Stricter requirements to receive tax subsidies under the new US Inflation Reduction Act have also accelerated non-US automakers to beat tax incentives with an affordable price range.
Hyundai Motor Group, at risk of losing the hard-earned second place on the U.S. electric vehicle front due to the new electric vehicle tax credit rule, has become freer to accelerate and strengthen the production of electric vehicles in the United States.
Unionized workers at Hyundai Motor and Kia who had strongly opposed manufacturing electric vehicles in the United States over fears of job losses in the future said on Thursday they would not stop the rise in the production of electric vehicles in the United States.
“Foreign-made cars are excluded from tax incentives in the United States, reducing their attractive prices, which can’t help management or the union,” said a senior union worker.
In the first half of this year, 45,060 Ioniq 5 units and 41,865 EV6 units were shipped from Korea, of which about 30% – 13,845 Ioniq 5 units and 12,568 EV6 units – headed to the United States.
“US production should increase provided it doesn’t come at the expense of domestic jobs,” said a Kia unionist.
By Lee Sae-ha, Won Ho-sup and Lee Ha-yeon
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]