Hyundai is attempting to maintain its competitiveness with automakers eligible for tax credits under President Joe Biden’s Inflation Reduction Act by offering up to $7,500 in cash bonuses to U.S. buyers of EVs. The promotion is available for the Ioniq 5, Ioniq 6, and Kona Electric and will run until January 31.Â
Moreover, the South Korean automaker does not qualify for the clean vehicle tax credit program, which aims to promote domestic production of EVs and their components. To address this, Hyundai is planning to establish an EV plant in Georgia, which could start producing electric cars by the end of 2024. According to BloombergNEF, Hyundai and its affiliate Kia sold 69,259 battery-powered cars in the U.S. in 2023, making them the second-largest electric vehicle manufacturer following Tesla.
Nevertheless, very few cars qualify for the EV tax credits, and the list of acceptable models might get even smaller due to strict regulations forcing manufacturers to lessen their reliance on Chinese suppliers for parts.
However, the Biden administration wants to shift the economy away from fossil fuels and revitalize American industry. The IRA also touches on another national security goal: to minimize the U.S. and its allies’ reliance on supply lines that it perceives as susceptible to China.
