Does Hyundai Need to Slash 2023 Hyundai Ioniq 5 Prices to Compete?
The small electric SUV space is heating up as automakers like Tesla and Ford slash prices. Why are automakers cutting prices for new EVs? Simple. Affordability plays a huge role in the demand for certain vehicles, and EVs already tend to be more expensive than their ICE counterparts. Ford and Tesla are two of the biggest players in the small electric SUV vehicle segment. Does Hyundai need to slash prices as well to maintain its position as the producer of the best small electric SUV?
Is the 2023 Hyundai Ioniq 5 too expensive?
The 2023 Hyundai Ioniq 5 starts at $41,450. The 2022 Hyundai Ioniq 5 had an MSRP of $39,950. It was eligible for the full federal electric vehicle tax incentive of $7,500. Many drivers were able to get the Ioniq 5 for close to $32,450 when factoring in the tax credit. The 2023 model year’s tax credit eligibility is unclear, as the incentive was modified following the Inflation Reduction Act of 2022. So, the new Ioniq 5 appears to be significantly more expensive than the previous model year. How does it stack up against the competition?
The 2023 Ford Mustang Mach-E starts at $46,895. The 2023 Tesla Model Y has a starting price of $52,990. Volkswagen’s ID.4 small electric SUV starts at $38,995. So, the Ioniq 5 is still one of the more affordable options compared to its rivals.
The Ioniq 5 prices increased by just $1,500 year over year. So, the likelihood of a price cut is low because the Ioniq 5 is still the top dog in the eyes of many experts and consumers. If it ain’t broke, don’t fix it, right? Though many consumers wouldn’t mind an Ioniq 5 starting price of $40K flat before taxes and fees, it doesn’t make much sense for Hyundai to make their already affordable and competitive small electric SUV even more affordable.
Is the Hyundai Ioniq 5 a good electric SUV?
The 2022 Hyundai Ioniq 5 won World Car of the Year in 2022 for several reasons, but there’s a clear explanation for why auto enthusiasts are enamored with it. The Ioniq 5 isn’t the quickest or the classiest in its segment. It doesn’t have an exceptional driving range. It’s the everyman’s small electric SUV.
The Ioniq 5 is a small electric SUV that most American drivers can afford. It’s practical, and it’s fun to drive. It’s the 2023 MotorTrend SUV of the Year because it’s an EV most drivers can enjoy. Hyundai’s EV checks all the boxes and makes a statement to the world. Watch out, Hyundai is going to be a formidable contender in the race to create the most popular electric vehicles.
What do drivers want to see next from the Hyundai Ioniq 5?
Hyundai has been diligently working on bringing variety to the Ioniq 5 nameplate. An Ioniq 5 N is in the works, which could be a sportier, more performance-driven trim.
More range couldn’t hurt, but until electric vehicle charging infrastructure improves, charging will always be inconvenient for drivers that need to travel long distances. Hyundai has done its part. Now the public needs the funds allocated to charging infrastructure to be put to use in areas with large concentrations of EVs.
