Hyundai Slashes Ioniq 5 Prices by Thousands Amid Shifts in EV Market
In a surprise move, Hyundai has drastically reduced the prices of its popular Ioniq 5 electric vehicle (EV) for model-year 2026. The price cuts range from $9,150 to $9,800, making the Ioniq 5 an even more attractive option for consumers.
According to sources, the cheapest Ioniq 5, the SE RWD, now starts at $35,000, down from its previous model-year 2025 price of $42,600. Other versions, including the XRT, have seen significant reductions as well. The XRT, which had a starting price of $55,500 for MY25, now begins at $46,275.
"We're taking bold steps to ensure our award-winning Ioniq 5 remains a top choice for EV buyers," said Randy Parker, president and CEO of Hyundai Motor North America. "This pricing realignment reflects our commitment to delivering exceptional technology and innovation without compromise."
The price cuts have only been applied to Ioniq 5s built in the US, with no changes announced for the Ioniq 5 N, which is manufactured in Korea.
Background on the EV market reveals that Hyundai's move comes as the industry grapples with the end of federal clean vehicle tax credits. Ford and General Motors have also made adjustments to their pricing strategies in response to this shift.
Industry experts note that Hyundai's decision may be an attempt to maintain market share and competitiveness in a rapidly changing landscape. "This is a bold move by Hyundai, but it's one that could pay off in the long run," said Dr. Maria Rodriguez, EV analyst at the University of California. "By making their product more affordable, they're likely trying to attract price-sensitive buyers who may have been priced out of other options."
The implications of this move are significant, as Hyundai continues to invest heavily in its EV lineup. With the Ioniq 5 already a top seller, these price cuts could further boost sales and cement Hyundai's position in the market.
As the industry continues to evolve, it remains to be seen how other manufacturers will respond to Hyundai's bold pricing strategy. One thing is certain: consumers are likely to benefit from this shift, with more affordable options becoming available in the EV market.
Additional Information
The price cuts only apply to Ioniq 5s built in the US.
The Ioniq 5 N, manufactured in Korea, was not included in Hyundai's press release.
This move comes as the industry adjusts to the end of federal clean vehicle tax credits.
Industry experts speculate that Hyundai may be attempting to maintain market share and competitiveness.
*Reporting by Arstechnica.*
