SAVANNAH, Ga. — Despite slowing sales of electric vehicles in the U.S., Hyundai on Tuesday introduced 2025 versions of its Ioniq 5 electric SUV with longer battery range and charging capabilities, aiming to broaden the appeal of the vehicles built at a massive new factory in Georgia.
The South Korean automaker unveiled a test version of its latest electric car at a dealership in Savannah, Georgia, a few miles from a sprawling new $7.6 billion manufacturing complexThe company says the factory will begin producing the new Ioniq 5s before the end of the year, but it didn’t say exactly when.
Through the first half of 2024, the Ioniq 5 was the second best-selling electric vehicle in America that wasn’t made by market leader Tesla. Tesla’s Model Y ranked first with more than 198,000 units sold, followed by the Model 3 with nearly 74,000, according to estimates from Motorintelligence.com. In third place was Ford’s Mustang Mach E SUV with just over 22,000 units sold, and the Ioniq 5 with nearly 19,000 units.
Electric vehicle sales in the U.S. are still growing, but have slowed as more practical consumers worry about range and the ability to charge while traveling. Tesla Inc. has slashed prices and offered low-interest financing, forcing others to follow.
Sales of electric vehicles in the U.S. rose about 7% in the first half of the year to 597,973, Motorintelligence.com reported. EVs accounted for 7.6% of the U.S. new-vehicle market, about the same as last year. Lease agreements, which include federal tax breaks, helped boost sales.
Many of the Ioniq 5 sales this year have been lease deals, which still qualify for a $7,500 federal tax deduction in the U.S. For purchases, however, Ioniq 5s currently aren’t eligible for the tax deduction because they’re not made in North America.
Hyundai expects electric cars produced in George to initially qualify for a $3,750 tax credit, and later for the full $7,500 credit.
Hyundai’s latest models feature upgrades aimed at “broadening the appeal of electric vehicles to as many people as possible,” said Joe LaMuraglia, chief communications officer at the company’s Georgia plant.
That includes longer-range batteries. Hyundai says the base model 2025 Ionic 5s can travel up to 240 miles (386 kilometers) on a single charge — a 20-mile (32-kilometer) improvement over previous models. Range can be extended to at least 310 miles (499 kilometers) with certain options, the company says.
The new Ioniq 5s also feature charging ports that are compatible with Tesla’s network of 17,000 Supercharger stations in the US.
“We’re broadening the availability of charging stations, which is one of the biggest barriers for people considering an EV,” La Muraglia told reporters in Savannah. He added: “If you’re going to take a road trip in one of our vehicles, it’s going to be a lot easier.”
Options for the standard model include a variant with a more rugged appearance and a modified design for off-road driving. It includes larger wheels with all-terrain tires and digital camouflage accents on the front and rear bumpers.
One thing Hyundai didn’t reveal is pricing. LaMuraglia declined to comment on how the new models’ pricing would compare to the 2024 Ioniq 5, which started at around $41,800.
And it’s unclear when the latest models will arrive at dealerships. The Bryan County plant is currently producing test models, like the one shown Tuesday in Savannah.
LaMuraglia said the first 2025 Ioniq 5s for retail sale will be produced at the Georgia plant before the end of December. At full capacity, Hyundai has said, the sprawling vehicle and battery factory will employ 8,500 people and produce 300,000 EVs a year.
“It’s so important that this vehicle is built right off the road,” LaMuraglia said at the unveiling in Savannah, “by people who live and work here and want to give back to this community.”
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Krisher reported from Detroit.