Hyundai Motor (005380.KS) has unveiled an aggressively priced new model in a bid to stage a comeback in China's electric vehicle market.
The Ioniq V, a battery-electric sedan built exclusively for China, is priced at 119,900 yuan (about 24.6 million won) for the base trim and 139,900 yuan (about 28.7 million won) for the top trim, Beijing Hyundai and Hyundai Motor said on the 26th. The car began taking preorders at the Chengdu Motor Show, which opened on the 21st, and goes on sale in September.
At 4,900 mm long and 1,890 mm wide, the Ioniq V has a mid-size body comparable to the Sonata in Korea. Pricing such a car in the 20-million-won range is seen as a bold gambit in China's fiercely competitive EV market. Compared with rival mid-size electric sedans — the BYD Seal (179,800 yuan), the Zeekr 007 (193,900 yuan) and the Xpeng P7+ (186,800 yuan) — it is more than 10 million won cheaper.
Perks for preorder customers are substantial. Beijing Hyundai has prepared a promotion package worth 26,000 yuan (about 5.3 million won). Customers who pay a 99-yuan deposit receive a 2,000-yuan discount on the vehicle price, while existing Hyundai owners get an additional 4,000-yuan subsidy.
All trims come with a heat pump system at no charge, along with five years of free data and over-the-air (OTA) updates. First-time non-commercial buyers receive a lifetime warranty on the body and core electrification parts such as the battery and motor, and Hyundai has added a guarantee to replace the car with a new one if a battery defect causes a fire within eight years or 160,000 km.
Behind such pricing is a cost-cutting strategy that fully embraces China's local supply chain. The battery uses CATL's lithium iron phosphate (LFP) product (53.5 kWh for the base trim, 66.8 kWh for the higher trim), giving a driving range of 520 to 650 km under Chinese certification standards. The self-driving technology was co-developed with the local startup Momenta, which equipped the car with a Level 2+ advanced driver assistance system (ADAS) built on more than 15 billion km of real-road data, supporting memory reverse assist (MRA) and automatic parking in complex underground garages. The car also offers strong features, including a 27-inch 4K wide display, an 11.98-inch head-up display (HUD), nine airbags and Dolby Atmos audio.
The Ioniq V is also significant as the first product of Hyundai's "In China, for China, to the world" strategy. Unlike the previous approach of developing a vehicle in Korea and partly adapting it for the Chinese market, the entire process — planning, research and development, parts sourcing and production — was completed locally in China. The aim is to shorten development time while quickly reflecting the price and digital specifications that Chinese consumers value.
Hyundai Motor Group sold 1 million cars a year in the Chinese market until the mid-2010s, but its sales slid after the THAAD dispute and have since fallen to around 100,000. Last year, the group's China sales came to 196,746 units. Beijing Hyundai aims to introduce 20 new models in stages through 2030 to lift annual sales — combining domestic sales and exports — to 500,000 units. The Ioniq V is the first of these.
The industry is watching the possibility of reverse-importing the Ioniq V into Korea. Hyundai Motor Group previously launched the Kia EV5, a mid-size electric SUV Kia built for China, in the domestic market after it drew a strong response. But the EV5 became about 2 million won more expensive as it came to Korea and was reworked to meet local specifications and safety standards. The Ioniq V was launched at a price lower than small EVs such as the Hyundai Casper Electric (from 28.47 million won) and the Kia Ray EV (from 28.52 million won), but its price is expected to rise sharply even if it does come to Korea.
