Hyundai Motor Group is slashing prices on its electric vehicle (EV) models in South Korea to protect its domestic market share amid weak demand, sluggish EV sales, and the growing presence of Chinese EVs.

Hyundai Motor Co. announced Wednesday that it will reduce prices by 3 million ($2,075) to 5 million won on nine EV models, with additional monthly inventory discounts. Affected models include the Ioniq 5, Ioniq 6, Kona Electric, Porter 2 Electric, ST1 (electric commercial vehicle), Ioniq 5 N, and Casper Electric. Genesis will also discount its electrified GV60 and G80 models. In Seoul, applying both government subsidies and Hyundai’s discounts, the actual purchase price of models like the Ioniq 5, Ioniq 6, and Kona Electric could drop by up to 10 million won.

Kia Corp. is offering additional benefits through its “EV Festa” promotion, reducing prices on the Niro EV, EV6, and EV9 by 1.5 million to 2.5 million won. The Bongo EV will see a discount of 3.5 million won, with further reductions on EVs produced in 2024. The purchase price of Kia’s EV6, EV9, Niro EV, and Bongo EV will be 8 million to 10 million won lower in Korea, with the Bongo EV available for up to 19 million won less.

Hyundai Motor Group’s decision to cut EV prices, despite sacrificing profitability, highlights the severity of the current downturn in the automobile market and the decline in EV demand. The competitive pressure from Chinese EV maker BYD, which launched the Atto 3 in the Korean market at a highly competitive price range (31.9 million to 32.9 million won), has also raised concerns that Hyundai could lose its home market to foreign imports, influencing its decision to discount EVs.

The lower price range of Hyundai’s newly released EVs also underscores its focus on defending its domestic market over profitability. “Affluent consumers tend to prefer high-priced European EVs, while budget-conscious buyers favor lower-priced options. With Hyundai’s position now uncertain between premium European brands and value-driven Chinese EVs, it seems the company prioritized boosting sales volume,” an industry insider said.

Globally, Hyundai Motor Group is pursuing region-specific strategies. In the United States, where EV sales are strong, Hyundai and Kia plan to strengthen their premium Genesis brand. Genesis recently updated its GV70 electrified SUV, increasing the battery capacity from 77.4 kWh to 84 kWh, extending the driving range from 400 km to 423 km on a single charge.

Genesis will also update its GV60 in the first quarter of 2025. The model is the only EV in Hyundai Motor Group’s lineup that uses the dedicated electric platform, E-GMP, which is expected to come with design changes and performance upgrades.

[ⓒ 매일경제 & mk.co.kr, 무단 전재, 재배포 및 AI학습 이용 금지]