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EconomyHyundai Boosts EV Safety, Produces Ioniq 9 in U.S. to Counter Tariff Pressures and Rival Kia

Hyundai Motor Company will exclusively manufacture the large electric SUV Ioniq 9 U.S. model in the United States. This strategic move aims to counter potential tariff pressures from a second Trump administration. The company has set a sales target of 6,500 units in South Korea. Hyundai’s strategy involves offering a reasonably priced vehicle in the 60 million won (approximately $41,300) range and emphasizing electric vehicle safety to overcome the EV chasm.

On Tuesday, during the Ioniq 9 media experience event at the Grand Walkerhill in Gwangjin-gu, Seoul, Lee Cheol Min, Managing Director of Hyundai Motor’s Domestic Marketing Division, announced, “We will produce the Ioniq 9 U.S. model exclusively in the United States.” This decision is designed to mitigate potential tariff pressures following recent hints from President Donald Trump about reciprocal automotive tariffs. 

The Ioniq 9, Hyundai’s flagship electric SUV, is tailored to the strong demand for large vehicles in the U.S., and its global showcase event was held in the U.S. 

In response to questions about U.S. tariff policy, Lee stated that, to their knowledge, there have been no definitive announcements regarding specific tariffs or their percentages.

Hyundai plans to manufacture all Ioniq 9 models for markets outside the U.S., including South Korea and Europe, in its Korean facilities. The company aims to sell 6,500 units in the Korean market. The Ioniq 9 is Hyundai Motor’s flagship electric SUV. It starts at 67.15 million won (approximately $46,300)—about 6 million won (approximately $4130) below its rival, the Kia EV9. 

Lee explained that Hyundai has set a competitive price point to maintain its leadership in the EV market as it works to overcome the current challenges in the electric vehicle sector.

Hyundai is also doubling down on EV safety. Choi Jun Seok, head of Hyundai’s Battery Design Team 1, announced an extension of the free support period for their connected service (Blue Link) from 5 to 10 years. This service has a battery diagnostic notification function that informs users of potential battery issues via text message. 

Choi elaborated on the company’s safety measures, stating that they are enhancing the insulation coating on battery cell separators and improving manufacturing quality. Additionally, he mentioned that they are implementing short-circuit prevention designs using electronic component fuses.

Hyundai Motor will collaborate with the National Fire Agency to develop unmanned firefighting robots and conduct field tests this year. This is considering the characteristics of electric vehicle fires, which involve rapid temperature increases and require extinguishing from beneath the vehicle. Furthermore, Hyundai is working with the Ministry of Land, Infrastructure, Transport, and KATRI (Korea Transportation Safety Authority, Automobile Safety Research Institute) to establish a transparent battery pre-certification system.

Emphasizing Hyundai’s commitment to battery safety, Choi added that Hyundai’s confidence in its battery technology is demonstrated by its pledge to cover up to 10 billion won (approximately $6.9 million) in costs related to battery fire incidents.

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