Hyundai to increase Ioniq Electric production by 50% after higher demand

Hyundai is having a lot of success with the all-electric version of the Ioniq EV, as we anticipated in our review. So much, that it now has production constraints, which it plans to solve within the next few months.

The problem is reportedly related to the LG Chem battery pack supply and the Korean automaker now plans to increase orders by 50%.

It sounds like Hyundai was underestimating the demand for the vehicle, even though it priced the Ioniq Electric aggressively in several markets and its 125-mile range made eligible to the highest EV incentives in places like New York and Ontario.

Last week, Business Korea reported that Hyundai had only ordered 6,000 to 7,000 EV battery packs from LG Chem:

“However, the company has difficulties in production as the demand of the Ioniq EV turned out to be two times higher than expected due to the EV syndrome at EV contests held by local governments earlier this year. In particular, LG Chem is seeking to boost production to meet the growing demand, but it is struggling to supply batteries to Hyundai Motor as well as other automakers.”

LG Chem supply constraints could also explain the low volume that we have been seeing from GM with the Chevy Bolt EV.

Now, Korea’s ETNews reports based on industry sources that they have taken steps to increase production in the coming months:

“According to electric vehicle industries on the 6th, Hyundai Motor Company is planning to increase an output of IONIQ Electric, which is produced from its production plant in Ulsan, from 1,200 (based on per month) to 1,800. Half of this output is supply for South Korean market and the other half is for foreign markets such as the U.S., and Europe. Quota for South Korean market will also increase from 600 per month initially to 900 per month.”

Hopefully, it should result in more availability in the coming months. The vehicle is available in Europe, a few markets in the US, primarily ZEV states, and in Canada. You can always check with your local dealers for inventory, but it’s rare at this point.

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