As Tesla lowers prices, Hyundai also cuts… EV price competition on fire

Input 2021.02.17 06:00

Price competition is intensifying as new electric vehicles are launched one after another in the domestic automobile market from the beginning of this year. In particular, as Tesla quickly adjusted its price to reflect the changed electric vehicle subsidy standards this year, Hyundai Motor Company (005380)The price of Ionic 5 is also expected to be lower than expected. Hyundai Motor Company and Kia to be released in the future (Kia Motors (000270))’S new electric vehicle prices are likely to be affected gradually.

According to Hyundai Motor Company on the 17th, the first electric car Ioniq 5 equipped with an electric vehicle platform will be unveiled on the 23rd. Ionic 5’s world premiere (the world’s first public release) was originally scheduled for early February, then was delayed once to mid-February, and once more. There are various issues such as nose and fire behind Hyundai Motor’s delaying the announcement of the Ioniq 5, but it is said that the price worries more than anything else.

It is the price of the Tesla Model Y that has been keen on Hyundai. The date of the Ionic 5 World Premiere was announced three days after the Tesla Model Y price was released. The price of Model Y was initially expected to be between 60 million won and 70 million won, but Tesla set the price of the standard range at 59,999 million won.

The government has lowered the amount below this when the government decided to pay only half of the subsidy for vehicles of 60 million to 90 million won compared to last year. Accordingly, standard trim can receive all subsidies of around 10 million won. The long range is 69.9 million won and the performance is 7999 million won, so only half of the subsidy is received. For EVs, subsidy payments have a big impact on the purchase, so when Tesla lowered its price, Hyundai had to reconsider the pricing strategy of Ioniq 5.

According to the industry, Hyundai Motors initially predicted that the starting price of the Tesla Model Y will be more than 60 million won, and accordingly, the price of the Ioniq 5 was planned in the mid-to-late half of 50 million won. However, it is known that Hyundai Motor Company has revised the price of the Ioniq 5 to 54 million won as Tesla released a trim below 60 million won. An industry official said, “The Ioniq 5 cruise (long-distance) model is 54 million won, and the basic model is 52 million won.”

The main specifications of Ioniq 5 are not yet known, but at least it is known that the body is similar to Model Y. In particular, the overall length is 111 mm shorter than the model Y, but the wheelbase is 110 mm longer, so the interior space is expected to be similar to the model Y. Accordingly, it is expected that the driving distance and price of the IONIC 5 will be major considerations for consumers.

The price competition for electric vehicles to be released in the future is expected to become more intense. Tesla set the price for the Model 3 Long Range at 59.9 million won, which is 4.8 million won lower than the previous model, even though it is a partial change (refresh) vehicle. The model 3 long range is also interpreted as having lowered the price to receive 100% of the government subsidy. The Standard Plus (54.79 million won) and the highest performance (74.79 million won) models, which did not exceed 60 million won, have no price change.

General Motors (GM) also drastically lowered its price by launching a new series of representative electric vehicle bolts on the 14th (local time). On this day, the Chevrolet Volt EV, introduced by GM, was released for 31995 dollars (35.31 million won), and the electric sports utility vehicle (SUV) EUV was released for 39,000 dollars (3752 million won). The starting price of the Volt EV was lowered by about 5.4 million won compared to the previous model. The domestic launch price is expected to drop to around 20 million won, considering government subsidies.