Hyundai slashes prices of Kona Electric and Ioniq 5 EVs, but cuts some features

Hyundai has announced a fresh round of price reductions for its Kona Electric and Ioniq 5 electric SUVs, intensifying the ongoing competition in the EV market. The Kona Electric Standard Range now starts at $46,000, while a new mid-tier ‘Elite’ variant has been introduced at $53,000, positioning it between the existing base and Premium models. Meanwhile, the Ioniq 5 range begins at $68,200, with the Premium N Line variant upgraded to include leather sport seats featuring N logos, replacing the previous suede upholstery. These adjustments aim to keep Hyundai competitive as new EV models continue to push price boundaries. However, the price cuts come with some notable reductions in equipment and features. Both the Kona Electric and Ioniq 5 have lost their previously standard portable chargers and the interior 230V 3-pin vehicle-to-load (V2L) outlets, which allowed owners to power external devices. The Kona Electric has seen more significant downgrades, including the removal of the heat-pump heating system in favour of a less efficient resistive element heater, potentially reducing driving range by up to 10% in cold conditions. Additionally, the Kona has reverted from an electrochromic rear-view mirror to a manual one, marking a step back from prior model enhancements. These changes reflect Hyundai’s balancing act between price competitiveness and maintaining feature richness in a rapidly evolving EV market. The decision to remove the heat-pump, a key upgrade in previous model years, is particularly surprising given its impact on efficiency and range. The new pricing and model revisions are already available to order, with deliveries expected to begin in dealerships from June. Hyundai is also offering limited-time ‘drive-away’ deals on the Kona Electric during June, which may further attract buyers despite the feature cuts. The ongoing price war in the electric vehicle sector suggests that manufacturers are under increasing pressure to offer more affordable options as new entrants continue to disrupt the market with aggressive pricing. Hyundai’s moves demonstrate how established brands are adapting their offerings to remain appealing, even if it means scaling back certain conveniences. The impact of these changes on consumer perception and sales performance will be closely watched as the EV market continues to expand and mature.