Hyundai to increase production of hybrids due to decreased demand for EVs

Hyundai is the latest automaker to shift its focus towards hybrids in response to increasing demand, following the lead of companies like Ford and GM. The South Korean automaker has confirmed plans to ramp up hybrid production at its Georgia factory, a move that aligns with the current market trends.

With Hyundai reporting a significant rise in demand for hybrids during the first quarter, the decision to prioritize hybrid models over electric vehicles comes as no surprise. Hybrids accounted for over 20 percent of sales in Korea and nearly 11 percent in the U.S. However, the drop in EV sales for Hyundai in the first part of the year may be attributed in part to the company’s lack of federal tax credit eligibility, a factor that is expected to change with the production shift to the Georgia plant later this year.

Despite the mixed sales performance in the EV segment, Hyundai remains optimistic about its electric models. The company saw a substantial increase in EV sales in March, doubling its numbers for the month, and overall sales were up in the first quarter. Hyundai’s electric vehicles are competitive, offering impressive range estimates, advanced technology features, and attractive designs.

Similarly, Hyundai’s sister company, Kia, has adjusted its strategy in response to evolving market conditions. With a focus on electrification but an emphasis on hybrid models and more affordable electric options, Kia aims to stay competitive in the face of growing competition from Chinese automakers. By beginning EV production in the U.S. this year, Kia expects to benefit from tax credits and potentially boost sales figures.

As the automotive industry continues to evolve, the shift towards hybrids and the strategic adjustments made by Hyundai and Kia reflect the adaptability and responsiveness of leading automakers in meeting changing consumer preferences and market dynamics.