The domestic automotive industry is continuously lowering prices for new electric vehicles as the recovery of electric vehicle demand remains sluggish, especially with low-priced models from Chinese manufacturers entering the South Korean market. Not only Hyundai Motor Company and Kia, but also import car manufacturers are joining the price competition for electric vehicles.
Recently, Hyundai Motor Company and Kia have been competing for dominance in the large electric sports utility vehicle (SUV) market. As Hyundai Motor Company's Ioniq 9, noted as a competitor to the Kia EV9, was priced approximately 6.22 million won lower at around 60 million won, the EV9 also moved to adjust its price.
On the 18th, Kia launched the EV9 standard model. The model, offered at a lower price than before with some specifications omitted, has a selling price starting from 64.12 million won. Considering government and local government subsidies, it can be purchased for around 61 million won in Seoul. The price of the existing EV9 model was also lowered by 4.8 million won, bringing it to around 68 million won.
Internally, within Hyundai Motor Group, it is reported that subtle friction between Hyundai Motor Company and Kia has continued around the launch of the Ioniq 9. There was an initial expectation that the Ioniq 9 would launch at a higher price than the EV9; however, with the entry of the Chinese electric vehicle manufacturer BYD into the domestic market and poor sales of the EV9, the selling price was significantly reduced.
Hyundai Motor Company is offering discounts of up to 3 million to 5 million won on nine electric vehicle models, including the Ioniq 5, Ioniq 6, Kona Electric, and Casper Electric. Discounts will be applied to both the basic vehicle price and monthly inventory levels. Hyundai Motor Company's premium brand Genesis is offering a 3 million won discount on the GV60 and a 5% discount on the G80 electrified model.
Kia is offering discounts of up to 2.5 million won on the EV9, Niro EV, EV6, and Bongo EV, with additional discounts available for vehicles produced last year. KG Mobility is providing a discount of 750,000 won to customers purchasing the Torres EVX until the end of the year. The actual purchase price of the electric pickup truck Musso EV, launching next month, is expected to be in the upper 30 million won range.
Among import car brands, Volvo has reduced the selling price of the small electric SUV EX30 by up to 3.33 million won. Depending on the trim, the Core model is reduced by 1.9 million won to 47.55 million won, while the Ultra model sees a 3.33 million won decrease to 51.83 million won. With government and local subsidies applied, it is expected to be purchasable in the low 40 million won range.
Stellantis Korea is proactively offering discounts equivalent to the not-yet-finalized government and local subsidies for certain electric vehicle models purchased during February. The Jeep Avenger and Peugeot e-2008 can be purchased at discounted prices reflecting the expected subsidy amounts of 2.12 million won and 2.09 million won, respectively. Estimated local subsidies based on the customer's residence area will also be provided simultaneously.
According to the automotive market research firm Kaizu You Data Research Institute, the number of new electric vehicle sales in South Korea last year was 146,883, a decrease of 9.7% compared to the previous year. Excluding Tesla (29,750 units), which has been included in the sales figures since last year, the total number is 117,133, representing a 27.9% decline from the previous year. In January of this year, new electric vehicle sales amounted to 2,378 units, down 6% compared to the same period last year.