Non U.S.-made EVs secure tax credits via lease loophole

South Korean, European, Japanese models enjoy special provision incentives

20240409N Ioniq 6

Some 60% of Hyundai Ioniq 6 purchases in the U.S. are now in the form of lease contracts. © Reuters

MASAHIRO OKOSHI, Nikkei Washington bureau chief

WASHINGTON -- The ratio of leases among electric vehicle sales in the U.S. has risen as high as 90% for some models, as overseas automakers take advantage of a loophole that allows some foreign-made cars to receive the same tax credits as those assembled in America.

South Korea's Hyundai Motor and Germany's BMW are both offering a $7,500 lease "bonus" or "credit" when leasing a new EV in the U.S., even though their vehicles are not assembled in North America.

Sponsored Content

About Sponsored ContentThis content was commissioned by Nikkei's Global Business Bureau.