Hyundai Motor Group’s electric vehicle(EV) exports to the United States have plummeted due to expanded local production and sluggish sales.

The Korea Automobile and Mobility Association revealed on Tuesday that Hyundai Motor and Kia exported seven-thousand-156 EVs to the U.S. from January to May this year, representing an 88 percent decrease from the 59-thousand-705 units shipped over the same period last year. 

This marks the smallest export volume since 2021, when Hyundai Motor Group’s electrification strategy began in earnest.

The decline is attributed to Hyundai Motor Group’s recent establishment of EV production bases in the U.S., including Hyundai Motor Group Metaplant America, an EV factory in Georgia that produced 28-thousand-957 Ioniq 5 and four-thousand-187 Ioniq 9 units during the first half of the year.

Kia began producing electric vehicles locally last year, manufacturing and selling seven-thousand-441 EV6s and seven-thousand-417 EV9s in the U.S. this year.
 
In addition, both carmakers are struggling with reduced demand for EVs.

According to Wards Intelligence, Hyundai Motor and Kia sold 44-thousand-555 EVs in the U.S. in the first half of this year, down 28 percent year-on-year, while total electric car sales in the U.S. rose by five-point-two percent.

The industry’s general analysis is that the outlook for the rest of the year is darker, as U.S. President Donald Trump’s “One Big Beautiful Bill Act” will end EV tax credits after September 30.