The price war started by Tesla at the beginning of this year is causing many manufacturers to follow in its footsteps. A few hours ago, Hyundai and KIA announced price cuts for their electric cars, starting with their home market, South Korea.
Korean manufacturers have confirmed the price reduction of models such as the Hyundai Kona EV, IONIQ 5, and IONIQ 6, as well as the KIA EV6, and Niro EV.
These discounts, announced as temporary promotions, represent a reduction of up to 8% for the Hyundai IONIQ 5, which will start at 46 million won, or 32,200 euros at the exchange rate, which represents a cut of almost 3,000 euros. For its part, the rear-wheel drive version with a 77 kWh battery will start at 52 million won, or 36,400 euros at the exchange rate before aid.
This movement allows us, on the one hand, to see that Tesla’s movements are affecting traditional manufacturers, both with the collapse of sales of their access models, such as the Volkswagen ID.3, which are unable to compete against rivals from higher segments that also have cheaper prices.
On the other hand, we can also see the enormous price differences of some models depending on the market. And the IONIQ 5 itself, with its rear-wheel drive version and 58 kWh battery, starts in Spain at 48,520 euros before aid or promotions. Something that is 50.6% more than in South Korea.
This movement has to do with Tesla’s recent price drop in South Korea, which allows those interested in getting a unit of the Model Y Standard for 56.9 million won, or 39,946 euros at the exchange rate. Too small a difference for many users who have preferred to opt for the American alternative over the local one.
A move by Hyundai and KIA that, according to analysts, will intensify the price war for electric cars in South Korea, a market traditionally dominated by the two local giants.
According to Bloomberg: “ A price war in Korea will intensify next year as foreign automakers could launch new models. American or European brands made in China could gain popularity .”
Hyundai and KIA price drops in Europe?
A movement that we will surely also see in our market. The sales figures for Hyundai and KIA so far this year are quite modest, with Hyundai accumulating only 902 units in Spain until September, or 2.3% of the market, while KIA reached 1,453 units, and 3.7% of the market.
Very far from the leaders, with Tesla in the lead with 8,062 units and 20.5% sales share, or MG, second, with 3,114 units and 7.9% of the market.
Figures that also mark a negative line, since as we remember, KIA closed 2022 with 7.1% market share and ranked second in terms of sales of electric cars in Spain, while Hyundai placed fifth, with 6.2% of total electric sales in our country.