Following Kia, Hyundai Motor is also cutting electric vehicle prices. The move is seen as fallout from Tesla recently lowering the price of its China-made mainstay models to the 30 million won range, including subsidies. With China's BYD signaling the launch of an EV in the 20 million won range, price competition for EVs is heating up from the start of the year.
On the 23rd, Hyundai Motor said it will lower the interest rate on its low-interest EV promotion, the "Hyundai EV Burden Down Promotion." This promotion is a 36-month return-deferred installment plan that guarantees a used-car price, allows deferral of installments equal to the residual value, and enables repayment of the deferred amount by returning the vehicle at the final installment. If the customer wishes, the deferred amount can be paid in a lump sum, or the installment term can be extended.
The eligible models are Hyundai Motor's passenger EVs: ▲ Ioniq 5 ▲ Ioniq 6 ▲ Kona Electric. The base interest rate for mobility installments will be lowered by 2.6 percentage points, from 5.4% to 2.8%.
For example, for the Ioniq 5 Standard model, after a maximum 3 million won discount including trade-in conditions, early-bird benefits, and production-month discounts, and factoring in average national and local government subsidies, the monthly payment comes to 310,000 won to use the vehicle for 36 months on a list price of 47.4 million won. That is 50,000 won lower per month than under the previous promotion. When the term ends, the deferred amount must be paid either by returning the vehicle or in a lump sum.
A Hyundai Motor official said, "Through this promotion, the Ioniq 5 and Ioniq 6 can receive interest savings worth about 2.5 million won, and the Kona Electric can receive about 2.1 million won." Including various vehicle discounts and interest savings, customers can receive purchase benefits totaling ▲ Ioniq 5: 5.5 million won ▲ Ioniq 6: 6.5 million won ▲ Kona Electric: 6.1 million won.
Price competition, sparked by China-made EVs, is growing fiercer. Tesla recently cut the price of the China-made "Model 3 Standard RWD (rear-wheel drive)" to 41.99 million won. With subsidies applied, the actual purchase price drops to the 39 million won range. BYD plans to roll out the small sport-utility vehicle (SUV) "Dolphin" this year, with pricing expected to be set in the high-20 million won range. In response, Kia the previous day introduced EV discounts of up to 3 million won and installment programs with rates in the 0% range.