In a strategic move to maintain its competitive edge, Hyundai has announced substantial discounts on its key electric vehicle models in South Korea. This initiative comes in response to recent price cuts by Tesla and other automakers.
Hyundai Responds to Market Pressure with New Promotions
Following Kia’s price reduction efforts, Hyundai unveiled its “EV Burden Down Promotion” to offer substantial savings on its IONIQ 5, IONIQ 6, and Kona Electric models. This campaign aims to lower interest rates and provide various financial incentives to attract buyers.
Hyundai’s new plan includes a significant reduction in interest rates for its popular EVs, cutting them from 5.4% to 2.8%. The promotion allows for a 36-month installment plan where payments can be deferred until the end of the term. This offer is designed to ease the financial burden on consumers and make EV ownership more accessible.
For instance, customers opting for the IONIQ 5 Standard Range can enjoy a reduced monthly payment of 310,000 won ($214), a decrease of 50,000 won ($35) compared to previous rates. Combined discounts can lead to savings of up to 6 million won ($4,100) on various models.
In the face of Tesla’s significant price reductions, including a cut of up to 9.4 million won ($6,400) on the Model Y, Hyundai’s promotional efforts aim to retain its market share by offering competitive pricing. The IONIQ 5, starting at 47.4 million won ($32,700), is positioned to compete effectively against Tesla’s Model Y, which starts at 49.99 million won ($34,000).
Global Expansion and Competitive Pricing Strategies
Hyundai’s strategy is not limited to the South Korean market. The automaker plans to introduce more economical models, like the IONIQ 3, targeting competitiveness in Europe and the UK against rising players like BYD.
The IONIQ 3 is anticipated to be priced at approximately 30 million won ($20,800) in South Korea and €29,000 to €33,000 ($35,000-$39,000) in Europe. However, due to US import tariffs, this model will not be available in the US market.
In the US, the IONIQ 5 remains a popular choice, earning the title of fifth-best-selling EV last year. The 2026 model is priced from $35,000, with leasing options starting at $189 per month, reflecting Hyundai’s commitment to offering affordable EV solutions.
| Hyundai IONIQ 5 Trim (US) | Driving Range (miles) | 2025 IONIQ 5 Starting Price | 2026 IONIQ 5 Starting Price | Price Reduction |
| IONIQ 5 SE RWD Standard Range | 245 | $42,600 | $35,000 | ($7,600) |
| IONIQ 5 SE RWD | 318 | $46,650 | $37,500 | ($9,150) |
| IONIQ 5 SEL RWD | 318 | $49,600 | $39,800 | ($9,800) |
| IONIQ 5 Limited RWD | 318 | $54,300 | $45,075 | ($9,225) |
| IONIQ 5 SE Dual Motor AWD | 290 | $50,150 | $41,000 | ($9,150) |
| IONIQ 5 SEL Dual Motor AWD | 290 | $53,100 | $43,300 | ($9,800) |
| IONIQ 5 XRT Dual Motor AWD | 259 | $55,500 | $46,275 | ($9,225) |
| IONIQ 5 Limited Dual Motor AWD | 269 | $58,200 | $48,975 | ($9,225) |
According to Kelley Blue Book’s 2026 Best Buy Awards, the Hyundai IONIQ 5 stands as the best overall EV available in the US market, highlighted by its aggressive pricing strategy.
Original Story at electrek.co