Hyundai and Kia Hit a US Speed Bump: EV Sales Dip Post-Tax Credit

TL;DR: Hyundai had a solid 2025 for EV sales in the U.S., thanks to the IONIQ 5 and new IONIQ 9. But Q4, especially December, saw a big dip for both Hyundai and Kia's EV numbers, mainly because those juicy federal tax credits vanished. Looks like even a good year can end with a surprise party pooper.

Meta: Hyundai and Kia experienced significant drops in US EV sales during Q4 2025, largely due to the expiration of federal tax credits, despite Hyundai's strong annual performance.

Alright, let's break down the U.S. EV sales numbers for our Korean cousins, Hyundai and Kia, 'cause it's a bit of a rollercoaster. Hyundai actually had itself a pretty good 2025 overall, setting an all-time record for electrified vehicle sales. The IONIQ 5 was still a star, moving 47,039 units, and the new IONIQ 9 SUV pitched in with 5,189 sales. Their hybrids were also flying off the lot, making up a third of their total sales. So far, so good, right? But then, Q4 hit like a ton of bricks.

The Tax Credit Hangover

When those federal EV tax credits expired on the last day of Q3, it created a bit of a gold rush, with folks buying EVs sooner than they planned to cash in. The result? A pretty rough Q4 for both brands' EV sales. Hyundai's IONIQ 5 sales plummeted 58% in Q4 compared to the previous year. And over at Kia, it was even tougher: the EV6 saw a 40% drop for the year, and the EV9, despite being a fresh face, was also down from its 2024 launch figures. Kia's overall U.S. sales were up 7% for the year, but the EV segment definitely took a hit.

This ain't entirely unexpected. When you pull a $7,500 incentive out of the market, people are gonna react. Hyundai has responded by slashing prices on its electric lineup, making the IONIQ 5 one of the best EV deals out there. Kia's doing the same, offering over $10,000 off its entire EV lineup. They're playing hardball to keep that momentum going.

What's Next for the Korean Duo?

The Hyundai Motor Group had big plans to build EVs in America, banking on those tax credits and stricter fuel economy rules. With the rules changing, they're adjusting their strategy, pivoting more towards hybrids and focusing on affordability. The Kia EV4 sedan, for example, got delayed indefinitely partly due to increased tariffs. So, what's the plan to keep that EV fire burning in the U.S.?

One potential answer: bringing their smaller, more affordable EVs like the Kia EV3 and the upcoming Hyundai IONIQ 3 to the U.S. market, or even building them stateside. These compact crossovers could be exactly what the market needs to reignite interest in a post-subsidy world. But details on their U.S. release are still scarce. So, for now, if you're looking for an affordable EV from these brands, you might have to keep your eyes peeled for those aggressive discounts.

What’s Next

Expect Hyundai and Kia to continue their aggressive pricing strategies and keep pushing their hybrid offerings. The real test will be how quickly they can bring those smaller, more affordable EVs like the EV3 and IONIQ 3 to the U.S. market and whether they can qualify them for any new incentives or local production benefits. The market has shifted, and these brands are scrambling to adapt. It's a survival of the fittest out there.

Alright, I'm out. Gotta go see if my old bicycle can get an EV swap. Maybe then I'll qualify for something.