Hyundai CEO reveals US EV leases are climbing as buyers take advantage of IRA tax credit
Hyundai has been on a roll in the US as the automaker embraces the industry’s transition to electric vehicles. The automaker says EV leases are climbing as buyers take advantage of the tax credit provided by the Inflation Reduction Act (IRA).
After the new IRA guidelines took effect in April, electric models with assembly or battery minerals sourced outside the US or its free trade partners lost eligibility – including Hyundai and Kia models.
After a breakout year led by the best-selling non-American EVs in the IONIQ 5 and EV6, the update threatened Hyundai’s strategy.
Hyundai has been vocal about its opposition to the restrictions after breaking ground on its first dedicated EV plant in the US in October that won’t come online until 2025.
However, a recent update from the IRS allows foreign-assembly models to bypass the law if the vehicles are leased rather than purchased outright. This is because leases are interpreted as commercial business in the law and, as a result, are eligible for the $7,500 tax credit.
Most automakers, including Ford, Hyundai, Kia, Mercedes, and Volkswagen, announced they would pass the lease incentives on to customers to drive down the cost of driving an EV and boost sales.
Hyundai sees growth in EV leases
Speaking with Automotive News, the CEO of Hyundai and Genesis North America (and COO of Hyundai Motor Company), Jose Muñoz, explained how the IRA bill was affecting business.
Muñoz said, “First and foremost, we really embrace the US policy of moving to electrification,” adding:
But obviously, we were counting on certain programs when we did our calculations to invest in our battery EV plant in Savannah and in a U.S. battery plant.
Hyundai North America’s leader says the company is “still committed to electrification” with 17 electric models by 2030 (11 from Hyundai and six from Genesis) while doubling down on its investments.
Muñoz says the company is “happy to see that the IRA is still allowing consumers to benefit from the lease side of the business” regarding the $7,500 tax credit eligibility. He explained the company is more focused on EV leases and:
Since the year started, we’ve increased from 5 percent to about 30 percent lease.
If the US wants to hit its goal of 67% EV share by 2032, Muñoz explains, “the more accessible we can be to everybody, the better.”
Perhaps more importantly, he added that the US needs other OEMs like Hyundai to reach over 11 million EV sales (67% of a 17 million market) by its target.
Hyundai continues building its US EV supply chain after revealing a new EV battery cell manufacturing plant in Savannah, Georgia, on Friday with LG Energy Solution, where the company’s Metaplant America is being built.
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Environment
White House will ‘make sure gas prices remain affordable’ heading into summer, Biden advisor says
Volvo and battery giant CATL are teaming up to turn old EV batteries into new ones. The partnership aims to further reduce the carbon footprint of EVs by recycling key battery materials.
As one of the first legacy automakers to commit to an all-electric future, Volvo is already making massive strides to reduce its carbon footprint.
In fact, Volvo’s last diesel-powered car rolled off the production line last month as the automaker looks toward a cleaner future.
Last year was a “key milestone” for Volvo, according to CEO Jim Rowan. Volvo sold over 113,000 fully electric vehicles in 2023, up 70% compared to 2022. Electric cars accounted for 16% of Volvo’s total vehicle sales in 2023, but this year is expected to be even bigger.
Rowan told Reuters he expects “tremendous growth” this year as new models like the low-cost EX30 roll out.
Volvo’s EX30 starts at $34,950 in the US and €36,590 in Europe as one of the most affordable EVs.
The EX30 is already impacting sales. Volvo sold 18,021 EVs in March, up from 12,621 the year before. More importantly, fully electric vehicles accounted for 23% of total sales.
Volvo’s new compact electric SUV “contributed to the sales growth,” according to Volvo Cars’ COO and deputy CEO, Björn Annwall. He added that Volvo would “focus on ramping up sales of our EX30” in the coming months.
Volvo expects EVs to account for 50% of total sales by the end of next year as it works toward an all-electric future by 2030.
Volvo and CATL to turn old EV batteries into new ones
Volvo and CATL announced a new partnership this week as they work to reduce the carbon footprint of electric vehicles.
As electric vehicle sales continue climbing, many batteries will eventually be retired, and Volvo believes it has an answer. Volvo and CATL are teaming up to recycle old and scrapped EV batteries.
Volvo suppliers will take apart the batteries to use over 90% of the key materials like nickel, cobalt, lithium, and others.
According to Volvo, CATL will then use the materials to make new EV batteries that will be used to power its new electric cars.
Volvo and CATL signed a long-term agreement in 2019 to supply batteries for electric Volvo and Polestar models.
Volvo aims to reduce CO2 emissions per average vehicle by 75% by 2030. In its 2023 annual report, the company revealed that it had reduced average CO2 emissions per vehicle by 20% compared to the 2018 baseline.
Source: CnEVPost, Volvo Cars
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Environment
You can power your home for 21 days with a Chevy Silverado EV and GM’s new bidirectional charger
GM Energy just debuted vehicle-to-home (V2H) bidirectional EV chargers – here’s how GM’s EVs will keep the lights on.
Once installed, GM Energy’s home EV chargers will enable customers to send power from a compatible GM EV to their home in the face of increasing power outages across the US.
Customers can purchase GM Energy’s V2H bundle through current GM mobile brand apps. It’s initially rolling out in five states – California, Florida, Michigan, New York, and Texas – with plans to expand over time.
At $7,299, the bundle doesn’t come cheap. It consists of the GM Energy Powershift Charger at $1,699, and GM Energy V2H Enablement Kit at $5,600. Installation costs and taxes won’t be included and will vary, depending on a home’s existing setup and other things. GM has partnered with home EV charging installer Qmerit.
But it’s comparable to other battery storage costs – a Powerwall costs $11,500 with a solar installation through Tesla – and GM’s system eliminates the need to install battery storage.
The first of GM’s EVs to be compatible with the GM Energy home product suite is the 2024 Chevrolet Silverado EV First-Edition RST, which is expected to be available to customers this summer.
The Silverado will be equipped with V2H bidirectional charging technology. With an enormous 200 kWh battery pack that can provide up to 10.2kW of power flow, the electric pickup is capable of powering an entire house for 21 days.
GM says it will continue to roll out V2H bidirectional charging technology across its Ultium-based EVs by model year 2026. That will include the 2024 Sierra EV Denali, the 2024 Chevrolet Blazer EV, the 2024 Chevrolet Equinox EV, and the 2024 Cadillac LYRIQ.
Some eligible 2024 GM EVs will require a dealership or over-the-air update to enable bidirectional charging.
Electrek‘s Jameson Dow will demo GM Energy’s new V2H products on May 9 and will report back with insights.
GM Energy is ready to compete with the likes of Tesla and its Powerwalls – it says it will sell stationary battery storage and solar integration later this year.
Read more: Chevy just revealed the Silverado EV First-Edition RST specs and it’s got 440 miles of range
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