Hyundai and Kia will reduce the prices of various EVs they sell in South Korea thanks to an expansion of government subsidies across the nation.
Hyundai has confirmed that prices of the Ioniq 5, Ioniq 6, and Kona EV will all fall across South Korea. In the case of the Ioniq 5, its starting price will fall to 46 million won ($34,100), a substantial 8% cut. Those living in Seoul will be able to purchase it for roughly 40 million won ($29,500) when taking into account local subsidies.
In addition, Kia has confirmed price cuts for the EV6, Niro EV, and the Niro Plus. Both Kia and Hyundai’s price cuts will come into effect in October and run through to the end of 2023.
Speaking with Bloomberg, the head of the Jeonbuk Institute of Automotive Convergence Technology, Lee Hang-Koo, said that the price cuts could amplify an ongoing price war across South Korea’s car industry.
“A price war will intensify next year in Korea as foreign carmakers may release new models,” Lee said. “US or European brands made in China could draw popularity.”
Read: How The Koreans Went From Bland To Bold In Less Than 15 Years
The Korean government hopes that subsidies will help to get electric vehicle sales back on track in the country. A total of 67,654 EVs were sold across the country in the first eight months of 2023 and while that’s a significant figure, it is down on the 71,744 units that were sold during the same period last year. In Seoul, the government was prepared to provide subsidies for 13,688 EVs this year but so far, it has only provided subsidies to 5,522 vehicles.
Kia unveiled its most affordable EV in South Korea last week. Dubbed the Ray, it is priced from the equivalent of just $20,500, and in the 20 days leading up to its release, some 6,000 pre-orders were placed.
