Hyundai’s Ioniq 5 electric crossover is bucking a broader trend of declining EV sales in the US, with first-quarter sales up 14 percent despite the end of federal tax credits for electric vehicles last September. This makes it one of the few EVs to see an increase in demand, while many others face a sharp downturn.
Market Shift and Consumer Response
The US government’s decision to phase out EV subsidies had a noticeable effect: consumers no longer have an immediate price reduction on new electric vehicles, which has cooled demand across the board. However, the Ioniq 5 demonstrates that not all EVs are suffering. Hyundai sold 9,790 Ioniq 5s in the first three months of 2026, a modest yet significant increase compared to last year.
In contrast, the Ioniq 6 saw sales plummet by 75 percent, effectively signaling its decline in the US market. Other Hyundai models also experienced mixed results: while overall sales increased by 1.0 percent to 205,388 vehicles (a first-quarter record for the brand), the Santa Cruz is being discontinued due to weak performance.
Strong Performance Across the Lineup
Hyundai’s success isn’t limited to the Ioniq 5. The Tucson remains its best-selling model with 55,426 units, followed by the Santa Fe (33,343 units) and the Elantra (33,063 units, down slightly by 1 percent). The Venue, Hyundai’s most affordable option, rose 12 percent to 6,761 sales.
Notably, hybrid sales are driving much of this growth, with the Santa Fe, Elantra, and Sonata seeing increases of 47 percent, 141 percent, and 107 percent respectively. The all-new Palisade also saw a 6 percent rise in sales, moving 37,704 units between January and March.
What This Means
The Ioniq 5’s resilience suggests that certain EV models can maintain demand even without direct government incentives. While subsidies can boost initial sales, a compelling vehicle with strong consumer appeal can overcome the absence of tax credits.
Hyundai’s overall strong performance, coupled with rising hybrid sales, indicates a flexible approach to changing market conditions. The company appears well-positioned to continue its growth, but maintaining this momentum will depend on adapting to shifting consumer preferences and potential further changes in government policy.
