Hyundai and Kia Electric Vehicle Sales Sharply Declined After Sudden Loss of Tax Incentives

Key Facts

Impact of the Tax Incentive Cancellation

Although a decline in electric vehicle sales in the USA after October was expected due to the absence of the $7,500 federal tax credit, such a sharp decrease for automakers like Hyundai and Kia came as a surprise.

Hyundai Sales

Hyundai confirmed it sold 70,118 vehicles last month, which is 2% less than in October 2024. Overall, sales since the start of the year have increased by 10% to 748,467 units, but this is almost the only positive news.

Ioniq 5 sales fell by 62% to just 1,642 units compared to 4,498 in October of last year. Ioniq 6 sales were 52% lower – 398 instead of 837. The Ioniq 9, which was not available last year, did not become popular: 4,494 units have been sold since the start of the year, and only 317 in October.

Other Hyundai models also experienced significant declines: Kona (-13%), Santa Cruz (-29%), Sonata (-32%), and Elantra (-16%). Total sales were sustained thanks to the Palisade (+6%), Santa Fe (+22%), Tucson (+16%), and Venue (+49%).

Detailed Hyundai Statistics

Model	25-Oct	24-Oct	Difference	25 YTD	24 YTD	Difference
Elantra	10,224	12,151	-16%	126,436	113,769	11%
Ioniq 5	1,642	4,498	-64%	42,733	34,816	23%
Ioniq 6	398	837	-52%	9,530	9,934	-4%
Ioniq 9	317	–	–	4,494	–	–
Kona	4,969	5,685	-13%	62,247	70,193	-11%
Nexo	2	4	-50%	5	93	-95%
Palisade	9,549	8,983	6%	102,331	90,775	13%
Santa Cruz	1,719	2,427	-29%	22,352	27,598	-19%
Santa Fe	11,800	9,644	22%	113,960	93,325	22%
Sonata	4,306	6,300	-32%	50,220	54,730	-8%
Tucson	23,036	19,829	16%	188,275	165,776	14%
Venue	2,156	1,444	49%	25,884	21,287	22%
Total	70,118	71,802	-2%	748,467	682,296	10%

Situation at Kia

A similar picture is observed at Kia. Since the start of the year, the company has sold 705,150 cars, which is a significant increase compared to 653,078 for the same period in 2024. Total sales in October also slightly increased from 68,908 to 69,002 units. However, as with Hyundai, Kia’s electric vehicles did not show success.

Kia sold only 666 units of the EV9 in October of this year compared to 1,941 last year. Total EV9 sales this year fell from 17,911 to 13,114. The EV6 showed even worse results: sales dropped from 1,732 to 508 units.

In the first ten months of the year, 11,585 EV6 units were sold compared to 17,717 last year. Kia also sells the Niro as an electric vehicle in the USA, but combines its sales with gasoline and hybrid versions.

These figures emerged shortly after Kia confirmed the postponement of the American launch of the EV4 “until further notice” due to changing market conditions.

Detailed Kia Statistics

Model	25-Oct	24-Oct	Difference	25 YTD	24 YTD	Difference
EV9	666	1,941	-66%	13,114	17,911	-27%
EV6	508	1,732	-71%	11,585	17,717	-35%
K4/Forte	9,955	12,858	-23%	117,598	116,862	1%
K5	7,631	5,818	31%	60,212	34,294	76%
Soul	3,991	4,622	-14%	44,399	44,716	-1%
Niro	2,698	1,546	75%	22,807	26,678	-15%
Seltos	5,622	4,266	32%	45,687	52,443	-13%
Sportage	16,057	13,681	17%	150,159	132,439	13%
Sorento	6,698	7,841	-15%	80,710	77,017	5%
Telluride	8,571	9,694	-12%	101,069	91,448	11%
Carnival	6,605	4,909	35%	57,810	39,636	46%
Total	69,002	68,908	0%	705,150	653,078	8%

The overall picture of Hyundai and Kia sales demonstrates that traditional models with internal combustion engines continue to support the overall figures, while electric vehicles have experienced a catastrophic decline. This may indicate that American buyers are still guided by financial benefit when choosing a vehicle, rather than environmental advantages. The postponement of the launch of new electric models, such as the EV4, may be a direct consequence of this market dynamic, forcing manufacturers to reconsider their strategies for the near future.