Hyundai Motor Group, which is in a “triple whammy” of sluggish domestic demand, electric vehicle casism, and Chinese electric vehicle airstrikes, has drastically lowered its electric vehicle price. Its strategy is to protect the home electric vehicle market through aggressive pricing policies.
Hyundai Motor announced on the 5th that it will sell nine electric vehicles at a discount of 3 million won to 5 million won lower prices for each vehicle, including a monthly inventory discount. The target models are Ioniq 5, Ioniq 6, Kona Electric, Porter2 Electric, ST1 (electric commercial vehicles), Ioniq 5N, and Casper Electric. Genesis discounts GV60 and G80 electrified models. If Hyundai Motor’s discounts are applied in addition to state and local government subsidies in Seoul, the actual purchase price of Ioniq 5, Ioniq 6, and Kona Electric will be reduced by up to 10 million won.
Kia will also hold an “EV Festa” that provides additional benefits to major electric vehicle models and lower the prices of Niro EV, EV6, and EV9 by 1.5 million won to 2.5 million won. Bongo EV, a commercial vehicle, will also be discounted by 3.5 million won. In addition, Kia will offer additional discounts on electric vehicles produced last year. As a result, if you purchase Kia electric vehicles in Seoul, the actual purchase price of EV6, EV9, and Niro EV is 8 million won to 10 million won lower than the original price, and Bongo EV can be purchased up to 19 million won cheaper.
Hyundai Motor Group has begun selling electric vehicles at a discount at the risk of a decline in profitability because of the current slump in the automobile market and a decline in electric vehicle consumption. On top of that, as China’s BYD’s Ato 3, launched last month, entered the market at a lower price (31.9 million won to 32.9 million won) than the car class, the sense of crisis that the home electric vehicle market could be lost to imported cars also seems to have affected Hyundai Motor Group’s decision to sell electric cars at a discount.
The recent drop in the price of electric vehicles released by Hyundai Motor Group shows its willingness to keep its home ground rather than profitability.
“Money consumers prefer expensive European electric cars, and reasonable consumers tend to prefer low-priced electric cars,” an industry official said. “As Hyundai Motor Group’s position between European premium brands armed with brand power and Chinese electric cars with cost-effectiveness has become ambiguous, it seems that the priority is to increase sales volume.”
In the global market, regional strategies are put forward. In the U.S., where Hyundai Motor and Kia’s electric vehicle sales are strong, the company plans to strengthen sales of its premium brand Genesis. In response, Genesis made the first partial change to the GV70 electric model, a sport utility vehicle, last month. By changing the battery capacity from 77.4 kwh to 84 kwh, the driving distance per charge has been increased from 400km to 423km.
In the first quarter of this year, the GV60 will be the only Genesis electric vehicle lineup to make partial changes to the GV60, which is equipped with Hyundai Motor Group’s electric vehicle platform “E-GMP.” With the first partial change since its launch, it is expected that not only design changes but also performance upgrades will be made.
[Kim Dongeun is a reporter]
