In an “EV Sale Fiesta,” Hyundai and Kia plan to cut prices on several electric vehicles amid an ongoing price war in Korea. The planned EV price cuts will run until the end of the year.
“We plan to prepare various discount programs to revitalize the domestic electric vehicle market in the future,” A Hyundai Motor Company official stated.
Hyundai announced its planned “EV Sale Fiesta” on Monday, offering special discounts for electric car buyers. The move comes as the South Korean government expanded subsidies to boost demand.
Several models are featured in the promo, including the IONIQ 5, IONIQ 6, and Kona EV. The deal includes 4 million won off (almost $3,000) on the IONIQ 5, 4 million won ($3,000) off the IONIQ 6, and 2 million won (nearly $1,500) off the Kona EV.
Including an additional government subsidy of 800,000 won, IONIQ 5 buyers can save up to 4.8 million won, or $3,500. The discount will make the EV much cheaper in South Korea, with starting prices of around 46 million won ($34,000).
Kia is running a similar deal with price cuts on the EV6 (3.84 million won/ $2,844 off) and Niro EV and Niro Plus models (1.44 million won/ $1,066).
If you add Kia’s monthly inventory discount, the EV6 is up to 4.84 million won ($3,600), while the Niro EV is up to 3.44 million won ($2,500). The Niro Plus is up to 4.44 million won ($3,300) off.
Hyundai and Kia cut prices as EV price war intensifies
Hyundai says it’s also expanding its ultra-fast EV charging network, “E-Pit,” boosting access to convenient charging.
As of Monday, Hyundai had a total of 214 E-pit charging stations spread throughout cities, highways, rest areas, and expressways.
The Hyundai official added, “In connection with the policy of expanding subsidies for the purchase of electric passenger vehicles, we have prepared a discount benefit to repay the support and love of our customers.”
Meanwhile, Kia said it plans to extend the benefits for the new Ray EV and flagship EV9 electric SUV.
Self-employed customers shipping EV9 models can gain member points that can be used to pay for one year’s worth of charging fees, amounting to 1 million won ($740) in savings.
Ray EV buyers can receive six months’ worth of charging fees worth 300,000 won ($222) through 150,000 won off the purchase price and another 150,000 won off for self-employed. The deals will run through the end of the year.
Hyundai and Kia’s latest price cuts come as EV sales growth slowed this year amid lagging economic growth, according to Lee Hang-Koo, head of Jeonbuk Institute of Automotive Convergence Technology (via Bloomberg).
EV sales in Korea slipped from 71,744 during the first eight months of 2022 to 67,654 this year. Korea’s new subsidies are designed to help stimulate demand.
Lee said, “A price war will intensify next year in Korea as foreign carmakers may release new models. US or European brands made in China could draw popularity.”
EV leader Tesla began selling its Model Y, made in China, for $44,000 in July, putting pressure on domestic automakers. Tesla’s Model Y was the best-selling car globally in the first three months of the year, making it the first EV to achieve the milestone.
Tesla’s aggressive price cuts this year are not only putting pressure on Hyundai and Kia but several major automakers in their home markets as buyers transition to all-electric options.
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