The number of pre-contracts for Hyundai Motor’s next-generation electric car Ioniq 5 surpassed 35,000 in 9 days. Of the 70,000 electric passenger cars that the government and local governments decided to subsidize this year, Ioniq 5 will already take up half. There is a growing likelihood that subsidies will run out early.
According to the industry on the 5th, Ioniq 5, which started pre-contracting from the 25th of last month, is known to have surpassed 35,000 units of pre-contracts until this day. It exceeded the domestic sales target of 26,500 units this year.
This year’s electric car subsidy is up to 12 million won per vehicle, including government expenses of up to 8 million won and local expenses of up to 4 million won (Seoul City). Subsidies vary depending on vehicle performance and efficiency, and Ioniq 5 is included in the eligible recipients of 12 million won. The price of the Ionic 5 is 52 million to 52.5 million won based on the basic trim of a long range model, and it can be purchased in the late 30 million won range if you receive individual consumption tax benefits (up to 3 million won) and subsidies for electric vehicles.
Local governments, including Seoul City, began to receive subsidies on or after the 23rd of last month. Seoul City is supporting 5067 electric passenger cars this year, with more than 10% of the total received. An official from Seoul said, “The application rate is 20% faster than last year.”
This does not include the pre-contracted Ioniq 5. If purchase contracts are made in the order of pre-contract after launch next month, the subsidy budget is expected to be exhausted more quickly. In the case of Seoul, the point of budget exhaustion in September last year is expected to be earlier this year. The Seoul Metropolitan Government plans to review the formation of an additional budget for the budget.
As the Ioniq 5 preoccupies the subsidy, the chances of applying for subsidies such as Tesla Model 3, Kia Electric Vehicle CV (project name) and Genesis Electric Vehicle JW (project name), which are scheduled to be released in the second half, are likely to decrease.
An industry insider said, “Considering that the subsidy application condition is’can ship within two months’, if Ionic 5 fails to meet the production speed, the subsidy opportunity will return to Kia and Genesis.”
Reporter Kim Il-gyu [email protected]
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