Hyundai EVs removed from US subsidy list again

The US Department of Energy had just included the Hyundai Group's electric cars on its list of EVs eligible for the US tax credit for the first time. But for three of the five models, it remained a brief intermezzo. The Ioniq 5, Ioniq 9, and Genesis GV70 Electrified models have already been removed again.

hyundai ioniq 5 schriftzug 2024
Image: Hyundai

Although the Kia EV6 and Kia EV9 are still on the subsidy list, the Hyundai electric models Ioniq 5 and Ioniq 9, as well as the Genesis GV70 Electrified are not. According to Business Korea, that is because “these models originally had batteries that did not meet the parts and minerals requirements stipulated by the U.S. Inflation Reduction Act (IRA).” According to insiders, Hyundai is thus now planning to replace the batteries in models sold in the US by March – and thus fulfil the criteria for the subsidy again.

As reported, the list of vehicles eligible for subsidies in the US shrunk significantly in the US as of 1 January 2025: from 49 to 25 models or model versions. For example, the VW ID.4, which loses its full tax credit of 7,500 dollars, is no longer listed. Models from Stellantis and Nissan, which were previously eligible for up to 3,750 dollars, also no longer qualify. Also gone are the Rivian R1T and R1S vehicles, which in various guises alone occupied twelve of the 49 positions in the 2024 list.

The five model series from the Hyundai Group were among the newly included models. They were to receive tax relief for the first time since the introduction of the IRA – in the full amount of 7,500 dollars. However, this currently only applies to the two Kias. It remains to be seen whether the information that the other trio will become eligible again in March will be confirmed.

Meanwhile, it is completely unclear how long the new list will last. The new Trump administration, which took office a few days ago, could scrap the tax credit for electric vehicles altogether. Currently, however, the subsidy is still being granted – primarily to listed eligible vehicles, but there is still a back door for foreign manufacturers – via leasing companies. That means that models that were not assembled in North America also receive the tax credit – but only if they are leased and used commercially.

The regulation has functioned as a tolerated loophole since 2023: if the vehicles of foreign manufacturers are purchased by leasing companies and then leased on, they can be declared as ‘commercial vehicles.’ Even if they are used by end consumers and not as a commercial vehicle in the true sense of the word. The tax credit, which in this case goes to the leasing company, is then used to reduce the monthly instalments for end users. As the requirements for the tax credit for ‘commercial vehicles’ currently stipulate less stringent criteria with regard to assembly and vehicles and batteries, vehicles assembled in Europe or Asia could also be subsidised here.

businesskorea.co.kr, fueleconomy.gov

1 Comment

about „Hyundai EVs removed from US subsidy list again“
Gordon Peterson
24.01.2025 um 08:10
If the USA want to miss out on Ioniq 5 and its derivations, that’ll be more for countries who acknowledge their superiority to Tesla. Ioniq 5 has been designed without compromise nor absence of the latest electro-engineering and structural excellence.

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