Investing.com -- Hyundai Motor (OTC: HYMTF ) is planning to temporarily suspend production of some electric vehicles (EVs) in South Korea. The decision comes in response to sluggish demand and the imposition of U.S. tariffs, according to industry sources who chose to remain anonymous.
The South Korean automaker intends to halt operations on select production lines from April 24-30 at its Ulsan complex. This facility is responsible for the production of the Ioniq 5 and Kona electric vehicles.
The suspension is reportedly due to a sharp decline in EV orders from major markets in April. This trend follows the discontinuation of government EV subsidies and the implementation of U.S. tariffs on imported vehicles.
The U.S. administration, under President Donald Trump, announced a 25% tariff on imported cars and light trucks earlier this month.
Hyundai Motor has not yet provided a comment on the matter outside of regular business hours.
In an attempt to assuage customer concerns about the potential impact of tariffs on dealer lots, Hyundai Motor has announced that it will maintain the sticker prices on its current model lineup for the next two months.
This measure will be in effect until June 2. It follows the South Korean auto group’s substantial investment of $21 billion in the U.S., which was announced in March.
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