Hyundai Motor (005380.KS) launched the 2027 Ioniq 5 on Tuesday. Hyundai made the aggressive move of lowering prices on some Ioniq 5 trims to respond to Tesla and BYD, which have been gradually expanding their dominance in the domestic electric vehicle market through aggressive price-cutting policies.
The new Ioniq 5 is characterized by a complete reorganization of its trim lineup. The Long Range model has been reorganized into five trims — E-Lite, Modern, Premium, Inspiration and N Line — while the Standard model has been consolidated into a single E-Value+ trim.
The Long Range Modern trim optimized some specifications from the previous Exclusive trim, with its sales price cut by 1.6 million won from before. The price of the Premium trim, which optimized the specifications of the Prestige trim, was also lowered by 900,000 won.
The 2027 Ioniq 5 is priced between 47.35 million won and 59.45 million won after EV tax benefits. Considering government and local government subsidies, the 2027 Ioniq 5 Long Range Modern trim can be purchased in the 45 million won range based on Seoul standards.
The price cuts come in response to Tesla and BYD actively targeting the domestic market with relatively lower price ranges. After Tesla lowered the price of the Model Y (Premium Long Range AWD) to 59.99 million won late last year, a cut of 3.15 million won, it has steadily increased sales. Last month, 8,762 units were sold, making it the best-selling single model in Korea.
BYD, which entered the Korean market last year, also significantly boosted its price appeal last month by offering its own subsidies of 1.09 million won (Dolphin) to 1.69 million won (Seal) in regions where local government subsidies had been exhausted. As a result, it surpassed 10,000 cumulative units sold in just 11 months, the shortest period among imported car brands.
"The 2027 Ioniq 5 is a model that has secured price competitiveness through a new trim configuration," a Hyundai Motor official said. "Through the 2027 Ioniq 5, which combines product appeal and reasonableness, we will provide customers with even higher satisfaction."
