While the Tesla Model Y and Model 3 maintain their leading positions in the US electric vehicle market, the race for subsequent spots is intensifying. In QII, the Hyundai Ioniq 5 climbed to third place with 10,940 units sold, according to data from Cox Automotive.

This is a notable achievement, as the Ioniq 5 surpassed several domestic rivals like the Chevrolet Equinox EV and Ford Mustang Mach-E. However, a report from Korean Car Blog suggests the model may be "dying from success." While online search tools still show inventory, dealerships are virtually empty.

Why is Hyundai unable to produce enough Ioniq 5s?

The report highlights three reasons Hyundai is struggling to supply the US market with sufficient Ioniq 5 units. First, rising gasoline prices have made electrified vehicles, including pure electric and hybrid models, more appealing than traditional internal combustion engine cars. The Korean automaker has greatly benefited from this trend, with hybrid vehicle sales increasing by 90% compared to 5/2025. However, this surge in demand has also rapidly depleted Ioniq 5 inventory.

The Ioniq 5 was the 3rd best-selling electric vehicle in the US in QII. Photo: Hyundai

The second factor is the "2024 lease cycle." Two-year electric vehicle lease contracts signed during previous promotional periods are now expiring, prompting users to transition to newer models.

The final factor is predictive: Hyundai may have proactively reduced Ioniq 5 production before federal tax incentives for electric vehicles expired on 30/9/2025. This policy change caused the overall electric vehicle market to slow, but demand for the Ioniq 5 "continued to grow strongly."

Buyers in the US are required to place deposits for incoming vehicles, with wait times extending from 6 weeks to two months. Even high-volume dealerships focused on electric vehicles report being completely out of stock. While a few units might still be available in more rural, remote areas where electric vehicle adoption is slower, major urban centers and US electric vehicle hotspots have exhausted their supply.

Consequently, experts offer several recommendations for current lease customers: extend their lease contracts until supply stabilizes, purchase their current vehicle, or return the car and explore used vehicle options.

Many alternative options

Customers unwilling to wait can consider other electric vehicle models with starting prices under 40,000 USD, such as the Kia EV6 or Toyota bZ. Toyota's model recently recorded notable sales growth, despite the Japanese automaker entering the electric vehicle segment later than many competitors.

For a more modest budget, consumers might consider the Nissan Leaf or Chevrolet Bolt EV. However, both of these models are smaller than the Ioniq 5, which features a deceptive design that makes it appear like a small hatchback.

In the US market, Hyundai's primary electric vehicle lineup currently centers on the Ioniq 5 and Ioniq 9. The standard Ioniq 6 version has been discontinued, likely due to tariff barriers, but the high-performance Ioniq 6 N variant is still available in limited quantities.

My Anh