Ioniq 5 cut by up to 1.6 million won; Polestar 4 also drops

Price-cut Model Y tops May sales chart

New arrivals feel the ripple — Volvo surges, Zeekr divides

Logistics costs, exchange rate squeeze profitability

An electric vehicle charging station in Seoul. [Yonhap]
An electric vehicle charging station in Seoul. [Yonhap]

Price competition among global automakers in South Korea's electric vehicle market is intensifying. After Tesla's Model Y topped monthly domestic sales following a price cut, imported brands have been reaping the rewards of value-for-money positioning — prompting major EV makers at home and abroad to race to lower their sticker prices. Hyundai Motor Co. and Kia have also launched discount offensives to defend their home turf, significantly easing the financial burden on consumers looking to buy an EV.

Industry sources say automakers have been cutting EV prices as they roll out updated model-year vehicles. Hyundai Motor restructured the trim lineup for the 2027 Ioniq 5, reducing the price by up to 1.6 million won (about $1,160). The new Modern trim — an optimized version of the outgoing Exclusive trim — dropped by 1.6 million won, while the new Premium trim, based on the former Prestige trim, came in 900,000 won lower.

Polestar went further, adjusting not only the vehicle price but also option costs. The 2027 Polestar 4 Coupe kept the rear-motor trim at its existing price while cutting the dual-motor trim by 2 million won to 69.9 million won. The brand also reduced the cost of select options — including the Nappa leather upgrade and the electrochromic glass roof — by 500,000 won each.

The 2027 Ioniq 5, which received a price cut of up to 1.6 million won with its model-year update. [Hyundai Motor Co.]
The 2027 Ioniq 5, which received a price cut of up to 1.6 million won with its model-year update. [Hyundai Motor Co.]

Vehicle prices are falling even as production costs rise, a trend analysts attribute largely to the rapid sales gains posted by imported models that have cut their prices.

Tesla is the clearest example. Late last year, the company lowered the price of the Model Y Premium RWD by 3 million won to 49.99 million won. According to the Korea Automobile Importers and Distributors Association, new registrations of the Model Y reached 8,762 units in May, up 40.5 percent from a year earlier — the highest figure across both domestic and imported vehicles. It marked the first time an EV and an imported car had topped monthly sales simultaneously.

Volvo's compact electric SUV, the EX30, also more than doubled its sales compared with a year earlier, with 317 new registrations in May — a 112.75 percent year-on-year increase. Volvo cut the price of the EX30 Core to 39.91 million won in March, a reduction of 7.61 million won. According to Volvo Car Korea, the EX30 surpassed 2,000 new orders within two weeks of the price cut.

A table showing EV price cuts by major automakers.
A table showing EV price cuts by major automakers.

Industry analysts say Chinese-made vehicles are setting a new price benchmark for EVs in South Korea. Where consumers once assumed EVs were inherently expensive, Tesla's China-built Model Y and brands such as BYD have introduced aggressive pricing that buyers now use as a reference point. Automakers are responding by accepting thinner margins in order to meet those expectations.

"Compared with internal combustion engine vehicles, EVs carry higher development and marketing costs, making strong profitability difficult," said Lee Ho-geun, a professor in the automotive department at Daeduk University. "Automakers appear to be setting aggressive prices to grow their market share, betting on the long-term potential of the EV market rather than near-term profits."

Volvo's flagship electric vehicle, the ES90. [Volvo]
Volvo's flagship electric vehicle, the ES90. [Volvo]

The aggressive pricing strategy is extending to new model launches. Volvo this month confirmed a domestic price in the 70-million-won range for its next-generation flagship electric sedan, the ES90. The single-motor extended-range variant will start in the low-to-mid 70 million won bracket, while the twin-motor version will be priced in the high 70 million won range. The pricing is seen as bold given that the European retail price stands at around 70,000 euros (approximately 120 million won, or about $81,100).

Zeekr, by contrast, has drawn a mixed consumer response since entering the Korean market with a premium EV positioning and a higher price tag. According to Zeekr Korea, the 7X starts at 52.99 million won — 3 million won more than the Tesla Model Y RWD. Online communities have noted that the pricing runs counter to the trend among imported brands of using competitive pricing to break into the Korean market.

Automakers are nonetheless grappling with mounting pressures. Logistics and production costs have continued to climb on the back of rising oil prices, while a weaker won — compounding the effect of price discounts — has sharply eroded the sales revenue and profit that parent companies recognize from the Korean market.

"There are intense internal debates between local operations and headquarters over consumer response and profitability," an official at an imported car company said. "If the exchange rate rises 20 percent overnight, profitability falls by that much without us doing anything — and with competition this fierce, pricing has become extremely difficult."

“한국 멋져” 일론머스크, 테슬라 모델Y 판매 1위에 SNS서 ‘태극기’ 펄럭 [여車저車]

“한국 멋져” 일론머스크, 테슬라 모델Y 판매 1위에 SNS서 ‘태극기’ 펄럭 [여車저車]

[헤럴드경제=권제인 기자] 지난달 국내 자동차 시장에서 테슬라의 ‘모델Y가’ 판매 1위에 올랐다는 소식에 일론머스크 테슬라 최고경영자(CEO)가 한국 시장을 치켜세웠다.
https://biz.heraldcorp.com/article/10767218

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