Hyundai Halts 2026 EV Production Amid Inventory Surplus and Slumping Demand

Hyundai's small electric SUV, the KONA Electric, is scheduled to be temporarily haltedproductionTemporarily pause and skip the 2026 model year due to declining demand. However, this is not a permanent end, as the manufacturer intends to bring the model back for 2027.

Industry experts mentioned that Hyundai claimed its existing stock is enough to satisfy customer needs, which is why it has decided not to release the 2026 model. The company also noted that manufacturing will restart in June for the 2027 model year following a short break.

Introduced in 2019, the KONA Electric represented Hyundai's strong move into the electric vehicle sector, highlighting the transition of its traditional gasoline models to electric alternatives. Since that time, Hyundai has introduced advanced EVs such as the IONIQ 5, which utilizes its specialized Electric-Global Modular Platform (E-GMP), while the KONA Electric was upgraded to its second version. Nevertheless, recent sales numbers have not met expectations.

In the U.S. market, sales of the KONA Electric in 2025 reached about 3,011 units, representing a 41% drop compared to the prior year. Although Hyundai does not provide specific electric vehicle sales data for the KONA model, industry experts highlight the overall decline in EV demand as a major reason for this decrease.

When the KONA Electric makes its return for the 2027 model year, it is anticipated to be available only in the base SE trim. This configuration is expected to include a 48.6 kWh battery, providing an estimated range of 200 miles (about 322 km) on one charge, along with a front-wheel-drive setup that delivers 133 horsepower.

Industry specialists see the move as indicative of the overall decline in EV demand within the U.S. market, not just a problem unique to the KONA Electric. Regulatory adjustments, such as the reduction of federal EV tax incentives, have created challenges for the electric vehicle sector, prompting some car manufacturers to stop certain models earlier or omit specific model years.

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