Hyundai Enters EV Price War with New Discount Campaign

Hyundai has launched a new 'EV Burden Down Promotion' plan in South Korea, offering discounts on the IONIQ 5, IONIQ 6, and Kona Electric to counter recent price cuts from Tesla and others. The campaign aims to significantly lower interest rates 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, buyers can save up to 6 million won ($4,100) on these vehicles. The promotion also offers a 36-month installment plan with a vehicle return deferral, allowing buyers to defer payments until the end of the term and then pay the lump sum based on the vehicle's residual value.

Hyundai is responding to recent price cuts from Tesla and other rivals, including Kia, which reduced prices on select electric vehicles by up to 3 million won ($2,000) in South Korea. 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.

The campaign is part of Hyundai's efforts to make its EV lineup more competitive in the global market. 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.

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 IONIQ 5 starts at $35,000, while 2025 models are still available to lease from just $189 a month.

Hyundai's efforts in the US market have been successful, with the IONIQ 5 being named the best overall EV by Kelley Blue Book's 2026 Best Buy Awards.