Hyundai has introduced the 2027 IONIQ 5 in its home market of Korea, pricing the refreshed electric SUV below previous levels. The move extends a broader pricing strategy that saw the automaker slash US prices by nearly $10,000 last year.
The Korean launch comes amid intensifying competition in the global EV market, where manufacturers are grappling with softening demand and rising inventory. Hyundai's pricing adjustment targets both domestic buyers and export markets, aiming to clear the way for higher-volume production of the new model.
Production of the 2027 IONIQ 5 is expected to ramp up at Hyundai's Ulsan plant, which serves as the primary manufacturing hub for the model. The facility has undergone retooling to accommodate the refreshed design and updated battery pack, though specific investment figures were not disclosed.
The price cuts reflect a broader industry trend toward affordability as automakers respond to slowing EV adoption rates and price-sensitive consumers. In the US, Hyundai's aggressive discounting helped boost IONIQ 5 sales last quarter, though margins remain under pressure.
While lower prices may stimulate demand, they also risk squeezing profitability across Hyundai's EV lineup. The company must balance volume growth with the need to fund future electric platform development and battery supply chain investments.