Hyundai and Kia slashed EV prices in South Korea, offering discounts on the IONIQ 5, IONIQ 6, EV3, and EV5 to counter recent price cuts from BYD and Tesla.
Hyundai counters EV price cuts with new discounts
A day after Kia reduced prices on several electric vehicles by up to 3 million won ($2,000) in South Korea last month, Hyundai followed suit.
After launching its new promotion, Hyundai said it will “significantly lower the interest rate” on its most popular EVs, including the IONIQ 5, IONIQ 6, and Kona Electric.
With monthly promos, early bird specials, and new trade-in deals, Hyundai said buyers can save up to 6 million won ($4,100).
Hyundai cut interest rates on the IONIQ 5, IONIQ 6, and Kona Electric from 5.4% to just 2.8%. The new promotion offers buyers a 36-month installment plan with a vehicle return deferral. Buyers can defer payments until the end of the term and then pay the lump sum based on the vehicle’s residual value.
For example, Hyundai said the IONIQ 5 Standard Range model can be driven for 36 months with a monthly payment of 310,000 won ($214). That’s 50,000 won ($35) less per month than before.
With all discounts combined, buyers can save up to 5.5 million won ($3,800) on the IONIQ 5, 6.5 million won ($4,500) on the IONIQ 6, and 6.1 million won ($4,200) on the Kona Electric.
Kia reduced prices on some of its most popular EV models by up to 3 million won ($2,000) and offers an “ultra-low interest rate installment plan” with 0% interest.
Like Kia, Hyundai is responding to recent price cuts from Tesla and other rivals. With new low-cost EVs entering the market, including BYD’s popular Dolphin electric hatch, Hyundai and Kia are fighting for market share with aggressive discounts, intensifying the EV price war in South Korea.
BYD is launching the Dolpin next month in Korea, starting at 24.5 million won ($17,000). It will go up against Hyundai’s Casper Electric (Inster EV overseas) and Kia EV3, which start at about 27.4 million won ($19,000) and 40 million won ($27,700) with incentives.
Tesla cut Model Y prices in South Korea by up to 9.4 million won ($6,400) in December. The cheapest Model Y now starts at 49.99 million won ($34,000).
For the Model Y Long Range, the starting price is 59.99 million won ($40,900), which offers 505 km (313 miles) of range.
The Hyundai IONIQ 5 starts at 47.4 million won ($32,700) before discounts. The EV5 Long range, offering a driving range of up to 460 km (285 miles), received a price reduction of 2.8 million won ($1,900). It now starts at 45.75 million won ($31,200).
New entry-level EVs and big discounts in other markets
Outside of South Korea, Hyundai plans to launch more affordable models, like the IONIQ 3, to compete with BYD and other Chinese automakers that are quickly gaining market share in Europe, the UK, and other global markets.
According to Korea JoongAng Daily, the IONIQ 3 is expected to start at around 30 million won ($20,800) in South Korea. In Europe, where it will mostly be sold, it will likely start at around €29,000 to €33,000 ($35,000-$39,000).
Sadly, Hyundai is not expected to bring the IONIQ 3 to the US due to the Trump administration’s tariffs on imports. Hyundai will build the entry-level EV at its manufacturing plant in Turkey for sale in Europe.
While the US won’t see the IONIQ 3 or Inster EV, the Hyundai IONIQ 5 was the fifth-best-selling EV last year, partly because it is one of the most affordable options.
The 2026 IONIQ 5 starts at $35,000, while 2025 models are still available to lease from just $189 a month, which is about as cheap a rate as you’ll get with any vehicle, electric or gas-powered, these days.
| Hyundai IONIQ 5 Trim (US) | Driving Range (miles) | 2025 IONIQ 5 Starting Price | 2026 IONIQ 5 Starting Price | Price Reduction |
| IONIQ 5 SE RWD Standard Range | 245 | $42,600 | $35,000 | ($7,600) |
| IONIQ 5 SE RWD | 318 | $46,650 | $37,500 | ($9,150) |
| IONIQ 5 SEL RWD | 318 | $49,600 | $39,800 | ($9,800) |
| IONIQ 5 Limited RWD | 318 | $54,300 | $45,075 | ($9,225) |
| IONIQ 5 SE Dual Motor AWD | 290 | $50,150 | $41,000 | ($9,150) |
| IONIQ 5 SEL Dual Motor AWD | 290 | $53,100 | $43,300 | ($9,800) |
| IONIQ 5 XRT Dual Motor AWD | 259 | $55,500 | $46,275 | ($9,225) |
| IONIQ 5 Limited Dual Motor AWD | 269 | $58,200 | $48,975 | ($9,225) |
According to Kelley Blue Book’s 2026 Best Buy Awards, the 2026 Hyundai IONIQ 5 is the best overall EV you can buy in the US.
After cutting prices on the 2026 model by up to $9,800, the IONIQ 5 is now “among the most competitive in terms of EV pricing,” KBB said.
If you’re interested in seeing one in person or ready to book a test drive, we can help you get started. Check out the links below to find available models near you.
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