[Asia Economy Reporter Suyeon Woo] Hyundai Motor Company will discontinue the 'first eco-friendly car' Ioniq Hybrid model within this year. This decision is to reduce sales interference among competing models as sports utility vehicles (SUVs) like Niro and Kona are gaining popularity in the eco-friendly car market, and the release of the Avante Hybrid, a model in the same class, is also anticipated.
According to the automotive industry on the 29th, Hyundai recently sent an official letter to nationwide dealerships stating that the Ioniq Hybrid line will be discontinued within this year. The discontinuation applies to the hybrid lineup including plug-in hybrids (HEV·PHEV), while electric vehicles (EV) will continue to be produced.
The industry interprets this discontinuation of the Ioniq Hybrid as a measure to reduce sales interference among Hyundai-Kia hybrid lineups of similar classes. The aging of the existing Ioniq model and the upcoming launch of numerous eco-friendly cars next year applying the new electric vehicle platform (E-GMP) are also burdensome factors.
As SUV popularity rises even among small and compact car segments, and with the new Avante Hybrid launch anticipated, the future position of the Ioniq is expected to narrow further. The 7th generation new Avante, released on the 26th, set a new record by surpassing 10,000 pre-orders in just one day despite the COVID-19 pandemic.
In the small SUV market, Kia’s Niro, the absolute leader in the eco-friendly car market, remains strong, and Hyundai’s Kona also strengthened its hybrid lineup last year, putting pressure on the Ioniq.
This year, Niro Hybrid (including plug-in hybrid) sold 2,787 units in the domestic market until February, an 8.4% increase compared to the previous year. During the same period, Kona Hybrid recorded sales of 497 units, more than double that of the Ioniq. In contrast, Ioniq Hybrid sales dropped by 26.8% to 246 units.
The industry expresses regret that the Ioniq, the first domestic 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 rival to Toyota’s Prius. At that time, it achieved world-class fuel efficiency (22.4 km/ℓ), proving Hyundai’s eco-friendly technology, and in Europe, Hyundai was even evaluated as surpassing Toyota’s hybrid technology.
Since its launch in 2016, the Ioniq Hybrid has sold nearly 20,000 units domestically. Until just five years ago, it is credited as a key player in growing the domestic eco-friendly car market from a negligible size to an annual scale of 100,000 units.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
