In a bid to maintain market share, Hyundai has rolled out significant discounts and lowered interest rates on key models such as the IONIQ 5, IONIQ 6, and Kona Electric. These changes follow a similar price reduction by Kia, which cut prices on some of its EV models by up to 3 million won ($2,000) in January.
Hyundai’s pricing strategy now includes interest rate cuts from 5.4% to 2.8% on select EVs, alongside flexible financing options. The company is offering up to 6 million won ($4,100) in savings, including trade-in offers and early bird specials.
Price Cuts and Financial Flexibility
Hyundai’s recent changes aim to make their EVs more affordable for South Korean consumers. The IONIQ 5 Standard Range model now benefits from a lower monthly payment of 310,000 won ($214), down by 50,000 won ($35) from the previous payment. These price cuts also extend to other models in the IONIQ and Kona lines, with the IONIQ 5 and IONIQ 6 seeing reductions of up to 5.5 million won ($3,800) and 6.5 million won ($4,500) respectively.
Alongside these discounts, Hyundai is offering a 36-month installment plan with deferred payments based on the vehicle’s residual value. This strategy enables buyers to drive their EVs without immediate financial strain, ultimately paying the lump sum at the end of the term.
This push for more competitive pricing is Hyundai’s way of responding to a rapidly evolving market, where price sensitivity is growing due to lower-cost alternatives from rivals such as BYD and Tesla. The company’s new offers come just after Kia’s similar reductions, reinforcing the growing trend of aggressive price competition in South Korea’s EV sector.
Competing with BYD and Tesla
According to Electrek, Hyundai’s price cuts are part of a broader battle with international competitors like Tesla and BYD, which have also been reducing prices to secure a larger share of the market. Tesla, for example, slashed prices on its Model Y in South Korea by up to 9.4 million won ($6,400) in December, with the cheapest Model Y now starting at 49.99 million won ($34,000).
BYD is also entering the market with its Dolphin model, starting at 24.5 million won ($17,000), offering an affordable alternative to Hyundai’s IONIQ 5 and other local EVs. This intensifying competition has led local manufacturers like Hyundai and Kia to introduce more aggressive pricing and new financing options.
In this environment, Hyundai’s response is seen as essential for maintaining its competitive edge. The discounts across its EV lineup reflect a direct counter to Tesla’s and BYD’s moves, aiming to entice budget-conscious consumers who may otherwise be drawn to rival brands offering similarly priced, feature-rich alternatives.
Global Plans: Affordable EVs for the Future
Hyundai is also preparing to expand its affordable EV offerings beyond South Korea. The company is set to launch the IONIQ 3, an entry-level EV, in South Korea and Europe, where it will compete with popular models from BYD and other Chinese automakers.
The IONIQ 3 is expected to start at around 30 million won ($20,800) in South Korea, and between €29,000 and €33,000 ($35,000–$39,000) in Europe, reports Korea JoongAng Daily. However, the IONIQ 3 will not be available in the U.S. due to the Trump administration’s tariffs on imports. Hyundai plans to build this model at its Turkish manufacturing plant for European markets.
In the U.S., Hyundai’s IONIQ 5 remains a standout in terms of affordability, with the 2026 model starting at $35,000. The IONIQ 5’s price reductions, which range up to $9,800 on various trims, make it one of the most competitively priced EVs on the market. Hyundai’s efforts to keep the IONIQ 5 affordable while offering a robust range of features have contributed to its success in the U.S., where it was named the best overall EV by Kelley Blue Book for 2026.
