Hyundai 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.
Hyundai counters EV price cuts with new discounts
A day after Kia reduced prices on select electric vehicles by up to 3 million won ($2,000) in South Korea, Hyundai followed suit with its own campaign on Friday.
Hyundai said the new promotion 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.
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.
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). The Hyundai IONIQ 5 starts at 47.4 million won ($32,700) before discounts.
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 looking for an affordable EV in the US, Hyundai’s lineup is a great place to start. With IONIQ 5 leases starting from just $189 a month, the deals are hard to pass up right now. Check out the links below to find deals near you.
FTC: We use income earning auto affiliate links. More.
