Prices Slashed by $7,600 to $9,800 by Model
GM and Ford Offer Lease Products to Extend Benefits
After the expiration of electric vehicle tax credits in the United States, Hyundai Motor Company has slashed the price of its Ioniq 5 electric vehicle by more than 13 million KRW. As a decline in electric vehicle demand is expected, global automakers are turning to such drastic measures to address the situation.
On October 1 (local time), Hyundai Motor America announced a significant price reduction for the 2026 Ioniq 5 lineup. Depending on the model, prices have been lowered by at least 7,600 USD (1.066 million KRW) and up to 9,800 USD (1.375 million KRW). The average price cut across all models is 9,155 USD (1.284 million KRW).
Hyundai Motor America stated that this measure is part of a broader strategy to maintain the Ioniq brand’s leadership in the electric vehicle market, while also responding to evolving consumer expectations and competitive pressures.
Randy Parker, CEO of Hyundai Motor America, said, “We are taking bold steps to ensure that the award-winning Ioniq 5 remains the top choice for electric vehicle buyers,” adding, “This price reduction demonstrates Hyundai’s commitment to delivering uncompromising excellence in technology and innovation.”
In the United States, as of September 30, the federal tax credit of up to 7,500 USD (about 1 million KRW) for electric vehicle purchases ended under the Inflation Reduction Act (IRA). The ‘One Big Beautiful Bill’ (OBBBA), which was signed by President Donald Trump in July, took effect on this date.
Automakers are preparing countermeasures to mitigate the expected drop in sales following the end of electric vehicle incentives. Ford and General Motors (GM) have arranged for their financial subsidiaries to pre-purchase dealer inventory vehicles and then offer them to customers as lease products, allowing the tax credit benefits to be applied.
When the financial subsidiaries of both companies pay upfront for dealer inventory vehicles, those vehicles become eligible for the 7,500 USD tax credit. Dealers can then offer these vehicles as lease products to customers, reflecting the tax credit benefit in the lease payments. This approach allows the previous benefits to be maintained for several months.
GM stated in a press release, “We have developed expanded offers with dealers to ensure customers can continue to benefit from the electric vehicle lease tax credit.” Ford also announced, “We will offer competitive lease rates through Ford Credit on lease contracts signed through December 31.”
Industry insiders and analysts have noted that electric vehicle demand surged through last month in anticipation of the tax credit expiration, and they predict a sharp decline in sales following the end of the incentives. Ford CEO Jim Farley expressed concern about a market slowdown, stating, “It would not be surprising if the share of electric vehicle sales in the United States is cut in half.”
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