To boost end-of-year sales, Hyundai and Kia have decided to reduce prices on some electric car models in their home country of South Korea.
Specifically, Hyundai will discount the Ioniq 5, Ioniq 6, and Kona EV. For the Ioniq 5 model, the starting price of the car is now only 46 million won (equivalent to 820 million VND). When combined with local subsidies, customers in Seoul will have the opportunity to buy this electric car model for around 40 million won (about 710 million VND).
Kia is also implementing a similar strategy for its EV6, Niro EV, and Niro Plus electric car models. This price reduction policy will be applied to customers purchasing cars from October until the end of 2023 to take advantage of the temporary expansion of subsidies by the South Korean government.
According to a leader at the Automobile Convergence Technology Institute in Jeonbuk, the price war currently taking place in the South Korean auto industry could be amplified. In the near future, the price war may intensify as car manufacturers continuously launch new models.
The South Korean government expects that these subsidies will help boost electric car sales. In the first 8 months of 2023, a total of 67,654 electric cars have been delivered to customers. However, this number is still significantly lower than the 71,744 cars sold last year.
The Seoul city government has allocated a budget to subsidize 13,688 electric cars this year, but up until now, only 5,522 cars have received support.