Daily Breeze: Hyundai matches tax credits with $7,500 cash bonus for EVs

Hyundai Offers Cash Bonuses for Electric Vehicle Buyers in the US

By Heejin Kim | Bloomberg

Hyundai Motor Co. is taking a proactive step to make its electric vehicles (EVs) more competitive in the US market. The Korean automaker is offering cash bonuses of up to $7,500 to incentivize EV buyers, ensuring that its cars remain on par with other automakers benefiting from tax credits under President Joe Biden’s Inflation Reduction Act.
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Keeping Hyundai EVs Competitive

Hyundai’s cash bonuses apply to the Ioniq 5, Ioniq 6, and Kona Electric models. This month-long incentive program will be available until January 31, as stated on Hyundai’s official website. While Hyundai’s EVs didn’t meet the requirements for the clean vehicle tax credit program, which aims to promote domestic production of EVs and components, these cash bonuses bridge the gap and make Hyundai’s EVs more attractive to potential buyers.

Future EV Manufacturing Plans

Currently, Hyundai does not have an operational EV factory in the US. However, the automaker is taking steps to change that. Hyundai is building an EV plant in Georgia, with plans to begin assembly as early as the end of 2024. This move demonstrates Hyundai’s commitment to expanding its EV production capabilities, ensuring a stronger presence in the US market.
According to BloombergNEF, in 2023, Hyundai and its affiliate Kia sold a combined total of 69,259 battery-powered vehicles in the US, making them the second-largest EV maker after Tesla.

Challenges and Future Outlook

Although the clean vehicle tax credit program provides incentives, only a limited number of vehicles qualify for the credits. Furthermore, stringent regulations are pushing automakers to reduce their reliance on Chinese suppliers for parts, potentially further limiting the list of qualifying car models.
Read more about how auto buyers are turning to hybrids as EV sales slow

National Security and Economic Objectives

The Biden administration aims to revitalize American industry and shift the economy away from fossil fuels. The Inflation Reduction Act aligns with this objective, while also addressing national security concerns. By reducing dependence on supply chains vulnerable to China, the US and its allies aim to enhance their economic and national security.
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Read More of this Story at www.dailybreeze.com – 2024-01-15 18:53:39