Hyundai And Kia EV Sales Collapsed 50%+ in October After Tax Credit Ended; Kia EV6 Down 71%

Hyundai and Kia See Over 50% Decline in October After Federal Tax Credit Ends: EV Sales Collapsed

The anticipated downturn in the U.S. electric vehicle (EV) market has begun, with Hyundai and Kia reporting a collapse in core EV sales for October 2025. Following the expiration of the $7,500 federal EV tax credit at the end of September, every key EV model from the two Korean brands saw sales plummet by over 50% year-on-year (YoY). The steepest decline hit the Kia EV6, with sales down 71%, confirming industry warnings that a sharp drop would follow the loss of incentives. This signals a rough quarter ahead for the EV segment, though both brands saw strong continued performance from their gas and hybrid models.

Core EV Sales Plummet: Over 50% Decline Across the Board

The data from Hyundai and Kia’s October 2025 sales reveal the immediate and profound impact of the incentive cutoff.

• Biggest Loser: The Kia EV6 suffered the most significant decline, with sales falling 71% YoY.
• Contrasting Price Cuts: The Hyundai Ioniq 5’s 63% decline occurred despite the fact that Hyundai had slashed its price by close to $10,000 on selected trims, an amount that comfortably exceeds the $7,500 maximum tax credit. This suggests that consumer sentiment, rather than just the final price, has been deeply affected by the policy change.

Hybrids and Gas Models Remain Strong

Despite the EV segment’s struggles, the overall market remains stable, buoyed by hybrid sales.

• Hybrid Surge: Hyundai’s hybrid sales increased by 41% last month compared to October 2024.
• Electrified Growth: Kia’s electrified models (including hybrids) jumped by 16% YoY, demonstrating that consumers are pivoting to partially electrified vehicles as a less risky alternative to full EVs.

Market Outlook: More Pain Ahead for the EV Segment

The results from Hyundai and Kia, the first to report October 2025 figures, set a negative tone for the rest of the industry.

• Widespread Impact Expected: Analysts predict similar declines for other automakers. Many brands, including Ford and GM, saw record EV sales in Q3 as buyers rushed to utilize the expiring tax credit.
• Industry Predictions: Ford CEO Jim Farley previously predicted that EV market share in the U.S. will fall to around 5% by the end of the year—half of its current share.
• Testing True Demand: Without the tax credit influencing decisions, the coming months will reveal the true, organic demand for electric vehicles and determine which models are genuinely competitive on merit and price alone.

Final Thoughts

The October sales results confirm the critical role the federal tax credit played in driving EV adoption. While the long-term future of EVs is secure, the short-term reality is a significant market contraction. Automakers must now lean on strong hybrid offerings and competitive pricing to weather the immediate storm and sustain momentum until the market adapts to the new “post-credit” reality.

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