"Cheaper Than Chinese Cars": Hyundai's Ioniq V Targets China With Bold Pricing in the 20 Million Won Range

Launched at Prices Ranging from Mid-24 Million to Mid-28 Million Won
Promotion Worth 5.3 Million Won for Advance Contract Customers
Localization Strategy Amid Ongoing Decline in Chinese Sales
"20 New Models to Be Launched Over the Next Five

Hyundai Motor Company has taken a decisive step in the Chinese market by offering aggressive localization and breakthrough pricing in response to the low-price offensive from Chinese electric vehicle manufacturers. By equipping the Ioniq V with CATL batteries and local autonomous driving technologies, Hyundai has reduced costs, and is now attempting to rebound in China by introducing pre-order benefits worth over 5 million won, including dedicated subsidies.

Hyundai Motor Ioniq V. Hyundai Motor

According to Beijing Hyundai, a joint venture between Hyundai Motor Company and Beijing Automotive Group, on August 25, the pre-order price for the all-electric Ioniq V ranges from a minimum of 119,900 yuan (approximately 24.6 million won) for the base trim to 139,900 yuan (about 28.7 million won) for the highest trim. Pre-orders began on August 21, with the official launch scheduled for September.

Beijing Hyundai is promoting a massive package valued at 26,000 yuan (around 5.3 million won) for customers who pre-order. By paying a deposit of 99 yuan, buyers receive a 2,000 yuan discount on the car price, and existing customers are offered an additional 4,000 yuan exclusive subsidy. All trims come with a complimentary heat pump system, five years of free data, and over-the-air (OTA) updates. Notably, the first non-commercial buyers are provided with a lifetime warranty on the vehicle body, battery, motor, and other key electrification components; furthermore, a special guarantee has been introduced that allows for a new vehicle replacement if a battery issue causes a fire within eight years or 160,000 km.

The key feature of this new model is dramatically slashing costs by boldly adopting the local Chinese supply chain. The Ioniq V is equipped with lithium iron phosphate (LFP) batteries supplied by China’s CATL in 53.5kWh and 66.8kWh capacities, securing a driving range of 520 to 650 km according to local standards. Its advanced driving assistant system was developed jointly with Chinese autonomous driving startup Momenta and offers features such as Level 2+ autonomous driving technology, Memory Reverse Assist (MRA), and automated parking. Despite including high-end features like a 27-inch 4K display and an 11.98-inch head-up display (HUD), Hyundai has managed to price the new car in the mid-to-high 20 million won range.

The Ioniq V is the first model to fully implement Hyundai’s "In China, For China, To the World" strategy. Moving away from the previous method of developing vehicles in Korea and making minor modifications for the Chinese market, this project handled everything from planning and R&D to parts procurement and production locally in China. This strategy allows for reduced vehicle development time while rapidly responding to Chinese consumers’ strong preferences for price and digital features.

Hyundai adopted this aggressive approach because the company’s sales decline in China has reached a critical point. In 2016, Hyundai Motor Group’s market share, combining Beijing Hyundai (6.5%) and Dongfeng Yueda Kia (3.7%), surpassed 10%, with annual sales exceeding 1 million units. However, following the THAAD dispute and the shift to new energy vehicle (NEV)-centered competition, annual sales plummeted to below 200,000 units.

The slump has continued into the first half of this year as well. According to Hyundai Motor Company’s semiannual report, the company’s sales in China during the first half fell by 22% year-on-year to 46,000 units. Kia’s sales also declined by 1.3% over the same period, reaching 38,000 units.

Hyundai and Beijing Automotive Group plan to make a joint investment of 8 billion yuan (about 1.6 trillion won) in Beijing Hyundai to expand their lineup of electrified vehicles and achieve annual sales of 500,000 units by 2030. They are also promoting the transformation of their Chinese factories into export hubs. In the first half of this year, Beijing Hyundai’s export volume reached 40,285 units, marking a 15.5% increase, while the export share rose from 37% to 46.7%.

When unveiling the Ioniq V in April, Hyundai CEO Jose Munoz stated, “China is the place with the fastest development speed, superior battery supply chain, discerning EV consumers, and an advanced innovation ecosystem. For Hyundai, China is an essential and core market.”

This content was produced with the assistance of AI translation services.