Despite slowing U.S. electric vehicle sales, Hyundai on Tuesday rolled out the 2025 versions of its Ioniq 5 electric SUV with improved battery range and charging aimed at broadening the appeal of vehicles to be built at a massive new Georgia factory.

The South Korean automaker unveiled a test version of its latest EV at a dealership in Savannah, Georgia, a few miles from a sprawling new $7.6 billion manufacturing complex. The company says the plant will begin producing new Ioniq 5s before the end of the year, though it hasn't said precisely when.



During the first half of 2024, the Ioniq 5 was America's second-best selling electric vehicle not made by industry leader Tesla. Tesla's Model Y was first with more than 198,000 in sales, followed by the Model 3 with nearly 74,000, according to estimates from Motorintelligence.com. Third was Ford's Mustang Mach E SUV at just over 22,000, and the Ioniq 5 at nearly 19,000.

Electric vehicle sales in the U.S. are still growing but have slowed as more practical consumers worry about range and the ability to recharge while traveling. Tesla Inc. has cut prices and offered low-interest financing, forcing others to follow.

U.S. electric vehicle sales overall rose about 7% during the first half of the year to 597,973, Motorintelligence.com reported. EVs accounted for 7.6% of the U.S. new vehicle market, about the same as it was for all of last year. Lease deals, which include federal tax credits, helped to boost sales.

Much of the Ioniq 5's sales this year have been lease deals, which are still eligible for a $7,500 U.S. federal tax credit. For purchases, though, Ioniq 5s right now aren't eligible for the credit because they aren't made in North America.

Hyundai expects EVs produced in George to be eligible for a $3,750 tax credit at first, qualifying for the full $7,500 credit at a later date.

Hyundai's latest models have upgrades aimed at "broadening the appeal of electric vehicles to as many people as possible," said Joe LaMuraglia, head of communications for the company's Georgia factory.

That includes batteries with a greater range. Hyundai says the base model 2025 Ionic 5s can reach up to 240 miles (386 kilometers) on a single charge — an improvement of 20 miles (32 kilometers) compared to the last models. Range can extend to at least 310 miles (499 kilometers) with certain options, the company says.

The new Ioniq 5s also come with charging ports that are compatible with Tesla's network of 17,000 Supercharger stations across the U.S.

"We broaden the availability of charging stations, which is one of the biggest holdbacks for people considering an EV," La Muraglia told reporters in Savannah. He added: "If you're going to go on a road trip in one of our vehicles, it will be a lot easier."

Options to the standard model include a variant with a more rugged appearance and a tweaked design for offroad driving. It includes larger wheels with all-terrain tires and digital-camouflage accents on the front and rear bumpers.

One thing Hyundai hasn't revealed is the price. LaMuraglia declined to comment on how pricing of the new models would compare to the 2024 Ioniq 5, which started at around $41,800.

And it's unclear when the latest models will arrive at dealerships. The factory in Bryan County is currently producing test models, like the one displayed Tuesday in Savannah.

LaMuraglia said the first 2025 Ioniq 5s for retail will be manufactured at the Georgia factory before the end of December. At full capacity, Hyundai has said, the sprawling vehicle and battery plant will employ 8,500 and produce 300,000 EVs per year.

"It's so important that this vehicle is going to be built right up the road,' LaMuraglia said at the Savannah unveiling, "by people who live here and work here and are going to be giving back to this community."

Tags: Georgia  Atlanta  Savannah  Hyundai  EV  Bryan County  Brian Kemp