Hyundai delivered another strong performance in the third quarter as several popular EV models led to 27% EV sales growth. However, analysts believe with the new tax credit provisions from the Inflation Reduction Act, a drop in demand “seems inevitable” for foreign automakers like the Hyundai Group.
Despite plans to start construction on its first EV plant in the United States this month, Hyundai is one of the automakers that will lose eligibility for its electric models to qualify for the EV tax credit, according to the current rules.
Hyundai announced its intentions to build a dedicated electric vehicle facility in the United States in May, but since the Inflation Reduction Act was passed in August, the automaker has shortened its timeline.
The plant was initially slated to begin construction in early 2023, but the South Korean automaker has warned that the US EV tax credit rules can impact business.
Jose Munoz, global president, and chief operating officer at Hyundai, spoke at a Reuters Auto Conference, highlighting the significance of the EV tax credit.
It will be very, very astronomical if nothing happens, if nothing changes. The impact is huge. That’s why we’re taking actions through all the channels.
Meanwhile, the Hyundai Group, including Kia and Genesis, has been scaling EV production en route to claiming second place in terms of EV sales for the first half of 2022, behind only Tesla.
The high-flying Hyundai IONIQ 5 and Kia EV6 are leading the way with 3.2% and 3.0% of the overall US electric vehicle market this year to date. However, toward the end of the third quarter, the South Korean automaker saw its EV sales momentum slip as its federal tax credit expires.
Hyundai IONIQ 5 Source: Hyundai
Hyundai’s Q3 earnings, EV sales, and guidance
The release of the Hyundai IONIQ 6 and Genesis GV60 helped boost overall sales, with EVs claiming over 5% of the Hyundai Group’s total sales.
Even though Hyundai’s EV sales rose 27% in the third quarter of 2022, several analysts are questioning if the South Korean automaker can maintain its momentum in the United States without the assistance of a tax credit.
In the US market, the IONIQ 5 fell from 1,516 sales in August to 1,306 in September, down about 14%.
Lee Jae-il, an analyst at Eugene Investment & Securities, spoke about the impact, claiming:
The impact of the Inflation Reduction Act on Hyundai’s EV sales in the U.S. market seems inevitable as EV incentives are the key factor to U.S. EV shoppers.
Besides Hyundai’s electric vehicles, the automaker’s overall sales grew 30.6% from 2021, yet net profit plummeted over 52% due to recalls over engine issues that cost the company over $900 million.
Looking ahead, Hyundai expects between 19 to 20% sales revenue growth, up from the previous guidance of 13 to 14%. At the same time, the automaker lowered vehicle sales expectations from 4.32 million units to 4.01 million with higher input prices and ongoing supply chain bottlenecks.
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Following a lawsuit brought against the California Air Resources Board (CARB) by major heavy truck manufacturers over California’s emissions requirements, CARB has struck back with fresh lawsuit of its own alleging that the manufacturers violated the terms of the 2023 Clean Truck Partnership agreement to sell cleaner vehicles.
Daimler Truck North America, International Motors, Paccar and Volvo Group North America sued the California Air Resources Board in federal court this past August, seeking to invalidate the Clean Truck Partnership emissions reduction deal they signed with the state in 2023 to move away from traditional trucks and toward zero-emission vehicles (ZEVs). The main point of the lawsuit was that, because the incoming Trump Administration rolled back Environmental Protection Agency (EPA) policies that had previously given individual states the right to set their own environmental and emissions laws, the truck makers shouldn’t have to honor the deals signed with individual states.
“Plaintiffs are caught in the crossfire: California demands that OEMs follow preempted laws; the United States maintains such laws are illegal and orders OEMs to disregard them,” the lawsuit reads. “Accordingly, Plaintiff OEMs file this lawsuit to clarify their legal obligations under federal and state law and to enjoin California from enforcing standards preempted by federal law.”
After several weeks of waiting for a response, we finally have one: CARB is suing the OEMs right back, claiming that the initial suit proves the signing manufacturers, “(have) unambiguously stated that they do not intend to comply.”
The agency is asking the court to compel the truck companies to perform on their 2023 obligations or, failing that, to allow CARB to rescind the contract and recover its costs. A hearing on the truck makers’ request for a preliminary injunction was held Friday, with another court date set for November 21, when CARB will seek to dismiss the case brought forth by the truck brands. The outcome of these cases could shape how state and federal government agencies cooperation on emissions rules in the future.
You can read the full 22-page lawsuit, below, then let us know what you think of CARB’s response (and their chances of succeeding) in the comments.
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Starting this month, parking lots in South Korea with more than 80 spaces will be required to install solar canopies and carports. But, unlike similar laws that have been proposed in the US, this new law doesn’t just apply to new construction – existing lots will have to comply as well!
South Korea’s Ministry of Trade, Industry and Energy announced in August that it has prepared an amendment to the Enforcement Decree of the Act on the Promotion of the Development, Use, and Diffusion of New and Renewable Energy to the effect that all publicly- and privately-owned parking lots in the Asian country with room for more than 80 vehicles will be compelled to add solar panels to their lots in a move designed to proactively expand renewable energy and create more solar and construction jobs.
In addition to creating jobs and working to stabilize the local grid with more renewable energy, the proposed solar canopies will offer a number of practical, day-to-day benefits for Korean drivers, as well.
The shaded structures will protect vehicles from heavy rain, snow, and the blistering summer sun — keeping interiors cooler, extending the life of plastics and upholstery, and even helping to preserve battery range in EVs and PHEVs by reducing their AC loads (and, of course, provide charging while the cars are parked).
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To their credit, Ministry officials absolutely get it. “Through this mandatory installation,” one unnamed official told Asia Business Daily, “we expect to expand the distribution of eco-friendly renewable energy generation facilities while providing tangible benefits to the public. By utilizing idle land such as parking lots, we can maximize land use efficiency. In addition, installing canopy-type solar panels can provide shade underneath, offering noticeable comfort to people using parking lots during hot weather.”
South Korea is proving that an idea like is practical. Here in the US, we’re proving that out, too – the Northwest Fire District in Arizona partnered with Standard Solar to build a conceptually similar, 657 kW solar carport system across 12 parking lots (shown, above) that delivers more than 1.23 million kWh of clean, emissions-free power annually and offsets the equivalent of 185,000 vehicles’ worth of harmful carbon emissions.
That’s just Arizona. In New York, a new initiative to help expand solar into parking lots has more than doubled commercially zoned land where EV charging stations can be sited, “freeing up” an additional 400 million square feet of space throughout the city.
What do you guys think – would something like this work in the US, or are we too far gone down the sophomoric, pseudo-libertarian rabbit hole to ever dig our way out? Let us know your take in the comments.
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Autonomous taxi company Waymo faced scrutiny last month when a car was caught on video illegally passing a stopped school bus that was letting children off in Atlanta. Now, the National Highway Traffic Safety Administration (NHTSA) is looking into it.
Georgia State Representative Clint Crowe seemed stunned after being presented with video of a Waymo driverless car illegally passing a stopped school bus on Briarcliff Road in Atlanta last month. “I’m a big fan of new technologies and emerging technologies and I think that driverless cars are going to become more prevalent,” he told local NBC news affiliate WBIR. “But we got [sic] to think about how they’re going to comply with the law.”
WBIR | Waymo illegally passes school bus
Crowe co-sponsored Addy’s Law in 2024. The legislation was named after 8-year-old Addy Pierce, who was killed in Henry County after being struck while crossing the street to get to her bus. The law stiffened penalties for illegally passing a stopped school bus, carrying penalties of up to $1,000 in fines and even jail time.
According to Crowe, those rules still apply to autonomous vehicles. “The majority of our traffic laws, the penalty is usually a fine and or driver’s license suspension. These cars don’t have a driver, so they don’t have a driver’s license and so we’re really going to have to rethink who’s the responsible party, who’s going to be responsible for being in control of that vehicle and who’s going to be the operator of that vehicle,” he said.
Crowe believes manufacturers should face stronger consequences when their vehicles break the law, saying the $1,000 fine doesn’t go far enough.
Now, thanks to pressure from social media and politicians like Crowe and Geoirgia State Senator Rick Williams, who helped co-author Addy’s Law, it seems like NHTSA is getting involved.
Prompted by media reports, the US Department of Transportation issued an investigation regarding Waymo’s AV, which states that, “the AV initially stopped, but then drove around the front of the bus by briefly turning right to avoid running into the bus’s right front end, then turning left to pass in front of the bus, and then turning further left and driving down the roadway past the entire left side of the bus. During this maneuver, the Waymo AV passed the bus’s extended crossing control arm near disembarking students (on the bus’s right side) and passed the extended stop arm on the bus’s left side.”
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While it remains to be seen how much work NHTSA is actually doing amid the ongoing shutdown of the Federal government, it’s worth noting that, regardless of the outcome, Senator Williams said he plans to introduce new legislation that would hold driverless car companies accountable with higher fines if their vehicles violate traffic laws. If that passes in Georgia, it could set the stage for politicians across the US and even abroad to use similar fins to halt the spread of autonomous taxis in their states.
We’re typically pretty tech- and autonomous-forward here, but as a parent I would absolutely lose my s*** if a Waymo or Robotaxi or whatever else ran over my kid. but I’ve also seen plenty of human drivers blow past a school bus with a knee on the steering wheel and both eyes glued firmly to their phones. Let us know who you’d be more ready to trust with your kids’ lives in the comments.
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Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisors to help you every step of the way. Get started here.
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