Hyundai Motor Co. is making the most out a provision in the Inflation Reduction Act that allows automakers to pass along a $7,500 clean vehicle tax credit to buyers if they opt to lease an electric vehicle.
The law, enacted in August, immediately disqualified EVs assembled outside North America from credit eligibility. And Hyundai's three EVs — the Ioniq 5 and Kona crossovers and Ioniq 6 sedan — are all built in South Korea.
Jose Muñoz, CEO of Hyundai and Genesis North America, told Automotive News the impact of that rule was "significant," and Hyundai's EV market share dropped "the moment" the law was put in place.
"We've tried to maximize the utilization of the so-called 45W paragraph, which allows for sales through the lease channel to benefit from the $7,500 tax advantage," Muñoz said at this month's New York auto show.Despite being early to market and enjoying robust sales, Hyundai EVs slipped in market share from 3.5 percent at the end of 2022 to 3.1 percent through February this year, according to registration data from Experian.