The irruption of the Chinese groups in the different international markets is causing many to have to recalculate their rates due to the push of some brands that arrive with great force and adjusted costs, and that add to the pressure of others, such as Tesla. But Hyundai has indicated that they will not enter into this price war and that they will be located in a differential segment thanks to their product.
One of the markets that are seeing the fastest implementation and impact of Chinese brands is Australia. There, the Chinese models already represent the five cheapest electric cars that are currently available, and with an increasing presence of these.
But despite the clear offensive of the Asian giant, Hyundai Australia it has been commented in a press conference that proposals such as the electric Hyundai Kona will not compete on prices against Chinese rivals such as BYD Dolphin, BYD Atto 3, and the MG4.
According to Hyundai Australia boss John Kett, “ We have to find another solution for that. The Hyundai Kona Electric will not be price competitive against those models, and we have to go to market knowing that. But what we do know is that there are other factors in our favor .”
Hyundai hopes to become a preferential choice for public and private fleets and work in the private market with significant discount offers.
Hyundai versus its rivals
The truth is that Hyundai’s strategy has a certain risk, since in an era where the customer can see the prices of different models in seconds from their mobile, it makes leaving possible dealer discounts in the hands of an option that the customer cannot come to contemplate when ignorant of it. He will not set foot in the dealership if he sees that the differences before the campaigns are too high.
For example, a customer who is interested in an IONIQ 5, will see how the official price of the basic version, with a 170 hp, 58 kWh engine and 384 km of approved range, amounts to 48,520 euros. This means 13,330 euros more than the intermediate MG4, Comfort, with 204 CV of power, 64 kWh of battery, and 450 km of range. The difference is that shoots up to 17,830 euros compared to the MG4 Standard, with the same engine power, 170 CV, 51 kWh battery, and 350 km of range. Everything, prices before promotions or aid.
An IONIQ 5 that is in its cheapest version is also 8,530 euros more expensive than the Tesla Model 3 Standard. A much more powerful proposal, and with more v, 455 km WLTP.
We can think that the IONIQ is somewhat above the MG4 segment. That is why we can compare the Chinese compact with the Hyundai Kona Electric. A proposal at the gates of its update, which will increase its size, capacities, and price, and that in Spain in its 64 kWh version, 484 km of range, is available before promotions from 42,850 euros.
This is still a big difference from its Chinese rivals, at €7,660 more than the MG4 or even €2,860 more than the Tesla Model 3 Standard.
We may think that later at the dealership, Hyundai can offer us discounts, but in exchange, as usual in all brands, for financing with certain characteristics. But this is something that MG itself also does, which has discounts of up to 4,200 euros, not counting public aid.
Will Hyundai manage to maintain its sales with a strategy aimed at attracting a more premium customer? It will undoubtedly be a very competitive battle where the Korean manufacturer will have to fight tooth and nail against some Chinese groups and Tesla that go with everything, and that are managing to reduce costs by increasing their economy of scale.
Something that in Europe already means that brands like MG have surpassed Hyundai itself so far this year, with the Chinese achieving a 4.7% market share, compared to Hyundai’s 4.3%.