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Hyundai IONIQ 5 to gain $7,500 tax credit with U.S. production at new Georgia plant

The IONIQ 5 is poised to become an even more compelling option for electric vehicle buyers in the U.S.

Hyundai’s top-selling electric vehicle, the IONIQ 5, is set to become even more attractive to U.S. buyers. The IONIQ 5 will be the first EV produced at Hyundai’s new $7.6 billion EV and battery plant in Georgia, which will enable the vehicle to qualify for the $7,500 federal tax credit.

After a strong performance in 2023, selling nearly 34,000 units (a 48% increase year-over-year), the IONIQ 5 continues its upward trajectory. Hyundai reported record sales of 3,361 IONIQ 5 models in March 2024. Meanwhile, in Q1 of 2024, the automaker handed over 6,822 units to customers, marking an 18% increase from the previous year.

Hyundai’s global chief operating officer, José Muñoz, emphasized the strategic importance of producing the IONIQ 5 at the new Metaplant in Georgia. He stated, “It’s a no-brainer that it needs to be the first EV built there,” highlighting the IONIQ 5’s status as Hyundai’s bestselling EV.

Additionally, the EV production line at the Georgia plant will be operational by October 2024, with the IONIQ 5 assembly commencing soon after. Although the battery unit at the plant will open about a year later, Hyundai will initially source batteries for the IONIQ 5 from a factory in Hungary. Munoz confirmed that the IONIQ 5 would qualify for the $7,500 EV tax credit once the U.S. assembly begins.

This announcement follows Kia’s milestone achievement of producing its first EV, the three-row EV9 electric SUV, at its West Point, GA, plant. This marked the first EV assembled entirely in Georgia.

Moreover, the 2024 Hyundai IONIQ 5 offers multiple trims with different starting prices and ranges. The SE Standard Range trim starts at $41,800 and drops to $34,300 after the $7,500 EV Tax Credit, offering a range of 220 EPA miles. The other trims have varying prices and ranges based on drivetrain options.

With U.S. production set to begin and eligibility for the federal tax credit, the IONIQ 5 is poised to become an even more compelling option for electric vehicle buyers in the U.S.

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Jaelyn Campbell
Jaelyn Campbell
Jaelyn Campbell is a staff writer/reporter for CBT News. She is a recent honors cum laude graduate with a BFA in Mass Media from Valdosta State University. Jaelyn is an enthusiastic creator with more than four years of experience in corporate communications, editing, broadcasting, and writing. Her articles in The Spectator, her hometown newspaper, changed how people perceive virtual reality. She connects her readers to the facts while providing them a voice to understand the challenges of being an entrepreneur in the digital world.

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