[Exclusive] Hyundai's 'First Eco-Friendly Car' Ioniq Hybrid Discontinued

[Asia Economy Reporter Suyeon Woo] Hyundai Motor's 'first eco-friendly car,' the Ioniq Hybrid (HEV·PHEV) model, is heading toward discontinuation. This move appears to be aimed at minimizing sales interference ahead of the launch of the Avante Hybrid model in the same class.

According to the automotive industry on the 27th, Hyundai recently sent an official notice to dealerships nationwide announcing the discontinuation of the Ioniq Hybrid lineup, including the plug-in hybrid model. The discontinuation applies only to hybrid models, while electric vehicle (EV) production will continue. Domestic production of the Ioniq Hybrid is expected to conclude within this year, but production for overseas export will continue for some time.

Industry insiders interpret the discontinuation of the Ioniq Hybrid as a decision linked to the launch of the new Avante Hybrid model in the same class. Additionally, the aging of the existing Ioniq model and the upcoming release of numerous new eco-friendly models next year based on the new electric vehicle platform (E-GMP) also played a role.

2019 Hyundai Ioniq Hybrid

Recently, Hyundai Kia Motors has been strengthening its hybrid lineup by launching hybrid models of key vehicles such as the Sorento, Santa Fe, and Avante. As hybrid models diversify, lineup adjustments to minimize sales interference among similar class vehicles have become inevitable. The Avante, a compact sedan in the same class as the Ioniq, is releasing its 7th generation model with plans to launch a hybrid version, while in the small SUV market, Kia’s eco-friendly Niro is performing well, putting pressure on the Ioniq.

This year, Kia Niro hybrid (PHEV·HEV) sales in the domestic market increased by 8.4% to 2,787 units through February compared to the previous year, whereas Ioniq Hybrid sales dropped by 26.8% to 246 units.

Moreover, the 7th generation new Avante, launched on the 26th, set a new record by surpassing 10,000 pre-orders despite the COVID-19 pandemic, indicating that the Ioniq’s position in the domestic hybrid market is expected to narrow further.

The industry expresses regret that the Ioniq Hybrid, Korea’s first domestically produced eco-friendly car, will disappear from the market. Introduced in January 2016, the Ioniq was Hyundai Motor Group’s first dedicated eco-friendly model, launched as a challenger to Toyota’s Prius.

At the time, it achieved world-class fuel efficiency (22.4 km/l), demonstrating Hyundai’s eco-friendly technology prowess. Particularly in Europe, Hyundai was recognized for surpassing Toyota’s hybrid technology. In a 2016 evaluation by Auto Bild, Europe’s most prestigious automotive magazine, the Ioniq Hybrid outscored the Prius in 5 out of 7 categories.

Since its launch in 2016, the Ioniq Hybrid has sold nearly 20,000 units domestically. It is credited as a key player in growing Korea’s once modest eco-friendly car market into a scale of 100,000 units annually just five years ago.