Hyundai allocates annual volume of IONIQ 5 electric vehicles per day
The IONIQ 5 electric car, presented at the end of February, became the firstborn of the new Hyundai E-GMP platform; the company received 23,760 orders on the first day of sales alone, with a production program of 26,500 planned for the first year. Trade unions can now be the main obstacle to increasing the production of this electric vehicle.
Business Korea notes that associations of workers in the Korean auto industry have long expressed concern about the future of workforces in light of the transition to electric vehicles’ production. The latter requires 30-50% fewer components and assemblies; assembling electric vehicles takes less time than cars with internal combustion engines. The need for workers on the assembly line is also decreasing, which is why unions are expressing concern about the labor market’s future. Workers are demanding job guarantees from Hyundai as they move to electric vehicles.
Limiting the supply of traction batteries may also be a problem. According to Korean media reports, Hyundai receives batteries from overseas, so even if unions agree to increase the production program for electric vehicles, they may run into a shortage of traction batteries. The head of Tesla, Elon Musk, also noted that the main limiting factor in electric vehicle growth is the shortage of batteries. The company is actively developing its own production, but at the same time, it does not refuse external purchases. Tesla’s entry-level electric vehicle models are shifting to smaller-capacity LFP batteries to fill the demand.
