The electric car market could face a significant setback if Donald Trump returns to the White House. South Korean automakers Hyundai and Kia are already anticipating this possibility and planning a strategic shift in case the former reality TV star is reelected.
Hyundai and Kia Prepare for Donald Trump’s Return
Hyundai and Kia may scale back on electric vehicles. The South Korean group anticipates the return of Donald Trump to the White House. Under the Biden administration’s influence and with the introduction of the Inflation Reduction Act (IRA), the automaker has invested billions of dollars in car production facilities in the United States. As Trump threatens to revoke the IRA, Hyundai and Kia may need to reconsider their roadmap in the land of Uncle Sam.
The possibility of Trump returning to the White House has already prompted Hyundai to add a production line dedicated to hybrid cars within its factory located in the state of Georgia. Initially, the site was meant to focus solely on 100% electric vehicles. According to Song Sun-jae, an analyst at Hana Securities, “even if Trump moves forward with his promise to abolish subsidies for electric cars, Korean automakers will be able to deal with the upcoming risks.”
Sales of Hybrid Cars on the Rise Worldwide
According to information from the Korea Times, Hyundai is set to offer hybrid engines on all its existing models. Furthermore, global sales of hybrid vehicles from the South Korean giant have increased by 17% in the first quarter of 2024. In the United States, Hyundai already offers hybrid or plug-in hybrid versions for Tucson, Santa Fe, Elantra, and Sonata. On the other hand, Kia offers hybrid groups for Niro, Sportage, and Sorento.
In Europe, sales of simple hybrid cars are also increasing. Between January and June 2024, they have surged by 22.3%. Like Americans, Europeans seem to currently prefer hybrids over 100% electric vehicles. If Trump regains power, all analysts agree that there is a fear that electric car sales will suffer a further decline.