After much deliberation, Hyundai has finally decided on the sales price of the Ioniq 9. The cheapest model is over $4,000 more affordable than its rival and twin model, the Kia EV9. The company has learned from the EV9’s high price, which is cited as the cause of poor sales despite its excellent product quality, and has devised a clever way to create a cost-effective trim.
On Monday, Hyundai announced the price of the brand’s first large electric SUV, the Ioniq 9, and began taking pre-orders. Industry insiders and outsiders say that the sales price of the Ioniq 9, which was released that day, reflects Hyundai’s struggles.
The Ioniq 9 has three trims: the basic Exclusive trim, Prestige, and Calligraphy. The lowest trim, the Exclusive trim, costs $45,880 when applying tax benefits for a 7-seater. This is $4,475 cheaper than the basic (Air) model of the EV9 launched by Kia. This bold move breaks the formula: “Hyundai is more expensive than Kia.”
Hyundai also lowered the price of the Calligraphy trim, the most expensive of the Ioniq 9 trims, although it is not as expensive as the EV9 of the same class. However, unlike Hyundai, Kia has no cost-effective trim; it has only two trims, the Air and Earth.
There are mixed opinions on whether Hyundai’s price war will work in the market. There are concerns that the 6-seater model, which has excellent space utilization and high market demand, is more expensive by an average of about $1,230 than the 7-seater model, making it difficult to purchase. The EV9 received a near-perfect score in owner evaluations conducted across all categories, including product quality, performance, and convenience, but its price was cited as a disappointment.
To compensate for this, Hyundai plans to pursue a high-end electric vehicle strategy for trims other than the basic trim. It is confident that its performance will support it. It is a major promotional point because it is a high-end electric SUV based on the electric vehicle-only platform (E-GMP), with a single-charge driving range of over 500 km (311 miles). The Ioniq 9 was also selected as the US’s most anticipated new vehicle of the year. A Hyundai official said, “The Ioniq 9 will be a new electrification experience that turns possibilities into reality,” and “We will provide a differentiated customer experience.”
