Hyundai offers U.S. EV buyers up to $7,500 cash after tax credits snub

Industry

Published: 18 Jan. 2024, 17:09

Hyundai offers U.S. EV buyers up to $7,500 cash after tax credits snub

Hyundai Motor's Ioniq 6 EV [HYUNDAI MOTOR]

Hyundai Motor and Kia are offering cash bonuses worth up to $7,500 for their popular EVs in the United States in the latest attempt to compete with automakers qualifying for a federal tax credit.

The discounts apply to Hyundai's Ioniq 5, Ioniq 6 and Kona EVs, as well as Kia's EV6 and Niro EVs. It comes as none of the EVs from Hyundai and Kia made the list of EVs eligible for tax credits under the U.S. Inflation Reduction Act (IRA).

Under the cash-back program, an Ioniq 6 can now be purchased at $34,950 from $42,450, while Ioniq 5 is down to $34,150 from $41,650. That will be $2,000 cheaper than the Tesla Model 3. The suggested retail price of the Kona EV is $25,175.

Hyundai has extended the program until the end of the month.

Hyundai Motor offers up to a $7,500 cash bonus to all U.S. EV buyers until the end of the month. [SCREEN CAPTURE]

Under the cash-back program, an Ioniq 5 can now be purchased at $34,150 from $41,650. That will be $2,000 cheaper than the Tesla Model 3. [SCREEN CAPTURE]

Kia is also offering a $7,500 cash bonus to EV6 buyers and up to $5,000 to Niro EV buyers. Kia's program runs until March 4.

The latest cash handouts come as Hyundai tries to maintain its market share in the U.S. market as none of its EVs are qualified for the tax credits worth up to $7,500 from the U.S. government. Hyundai has no EV assembly plant in North America currently and is building one in Georgia which is scheduled to start operations in the fourth quarter.

Hyundai and Kia have sold a total of 94,340 EVs in the U.S. market, becoming the No. 2 for the first time beating Ford Motor. Tesla was No. 1.

The EV price war is likely to intensify this year with major automakers scrambling to cut down the prices of their cars.

General Motors has announced it is also offering up to $7,500 discounts for U.S. customers on particular EVs that did not make it to the IRA list.

Volkswagen cut the price of its ID EV series by up to 30 percent in European markets.

Tesla also cut the prices of its Model Y in major European markets recently, right after it reduced prices in China.

BY SARAH CHEA [chea.sarah@joongang.co.kr]