Long Range Model 7 Million KRW
Standard Rear-Wheel Drive 6.9 Million KRW
Intense Competition to Secure Local Government Subsidies
[Asia Economy Reporter Choi Dae-yeol] The purchase subsidy for Hyundai Motor's first sedan-type dedicated electric vehicle, the Ioniq 6, has been finalized. The long-range model with a larger battery capacity will receive 100% of the subsidy for all trims, while the standard model with a smaller battery will see a slight reduction. Customer deliveries are scheduled to begin in mid-month for those who made pre-orders. With fewer than 40,000 subsidies remaining until the end of the year, competition among manufacturers to secure subsidies through vehicle deliveries is expected to intensify.
According to data from the Zero Emission Vehicle Integrated Website on the 8th, the Ioniq 6 long-range model receives a subsidy of 7 million KRW for all trims, while the standard rear-wheel-drive (18-inch) trim receives 6.9 million KRW. Local government subsidies are adjusted according to the national subsidy, with Seoul offering up to 2 million KRW. If the vehicle is registered in Seoul, the long-range model receives 9 million KRW (7 million + 2 million), and the standard model receives 8.87 million KRW (6.9 million + 1.97 million).
Hyundai Motor recently began preparing for deliveries by sending vehicles to various branches and dealerships for display. The vehicle is considered one of the highly anticipated models for consumers in the second half of the year, with over 37,000 pre-orders received on the first day of pre-contracts late last month. Hyundai Motor CEO Jang Jae-hoon set a domestic sales target of about 12,000 units for this year at the Busan International Motor Show held in July.
The Hyundai Ioniq 6, which made its debut at the Busan International Motor Show held last July Considering there are about three months left until the end of this year, this equates to selling roughly 4,000 units per month. Among electric vehicles sold domestically, the Ioniq 5 and Kia EV6, which are also from the same company and rank high in sales, sell about 2,000 to 3,000 units monthly.
The key factor lies in the subsidies. Since each local government has different capacities to provide subsidies, vehicle deliveries may vary depending on whether subsidies are available in the region where customers register their new cars.
According to industry sources, as of the previous day, the remaining subsidy quota for vehicle deliveries nationwide is about 21,570 units (based on priority recipients). Some local governments reallocate subsidies reserved for priority recipients or corporate/institutional quotas to general buyers (priority recipients) depending on vehicle delivery situations. Even if all these quotas are redirected to the general public, the current remaining amount is only about 36,000 units. More than 30 local governments nationwide, including Asan in Chungnam where the Ioniq 6 is produced, have exhausted purchase subsidies for the general public.
Europe's largest electric vehicle manufacturer, Volkswagen, plans to launch the highly demanded electric vehicle ID.4 domestically in mid-month. Tesla, which has somewhat eased delivery backlogs, has recently increased its import volume to Korea. As major automakers actively engage in the market, competition to secure subsidies is expected to become even fiercer.
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